Analysis of this week and what to expect next - Meetings of FED, BOJ and BOE all in one week

The last week was very positive for stocks. The overall sentiment was very positive. The prices of the US indices reached their previous highs, but they end up giving all of the gains. The European indices also end up the week with losses. The price of Oil reached the high of $51.52 for a barrel and this supported the indices, but the price of Oil also gave in and started to retreat from the high ending at levels of $49.30. Since the start of the week chances for rate increase went up as Janet Yellen spoke, but after the latest Non-farm payroll number came out worst than expected, most likely rates will stay the same for this month.  No one is expecting a rise at the moment. We are awaiting the FED meeting on Wednesday at (21:00 our time). Despite of the positive sentiment the indices are overbought and at levels of resistance close to their peaks and we might see a correction during the next week.

On the currency front, most gainers were the AUD and NZD but JPY as well, being the strongest currency.The biggest decline we saw on the British pound. With every day as we get closer to the Brexit which is on June 23rd, the sentiment is getting more negative against the pound. Different exit polls are publishing their numbers of the possible results of the referendum and this impacts all pound crosses negatively with high volatility. The JPY was and continue to be the strongest currency, and this situation was broadly Risk Off sentiment. Investors are still not seeing enough actions from the BOJ but only words. Gold price when up this week and continue to climb. It is possible that it would reach for it previous high at around 1300, due to the weaker dollar.

Next week will be very dynamic and busy. The investors attention will be towards the FED meeting on Wednesday. On Thursday there are rate decision from the BOJ and also Super Thursday, the decision and vote of the BOE. With all these important news events, all market participants will be very careful, also the Brexit is coming up in the week after that. These are only the most important news but there are others as well.