BoE and OPEC will dictate the the market pulse next week - 18.06. - 22.06.2018

The next week is expected to be no less exciting than the one we witnessed on major fluctuations in all markets. The movements were driven by central bank decisions, with the ECB finally committing to a certain period of time to end the quantitative easing, and the Fed decided that four interest rises in 2018. is the best option for the US economy. Next week, we expect two more central bank decisions on interest rates and a bunch of CB reports on monetary policy. On Thursday, the volatility of FX and stock markets will be the highest, as at 10:30 Swiss National Bank will announce its decision on the main interest rate in the country and at 11:00 will give a press conference and directions to investors where it will take over the monetary country policy. The expectation is that the central bank will not undertake any cardinal changes and this will not lead to strong CHF volatility. A little later at 14:00, Bank Of England will make the same decision as traders do not expect a raise in interest rates. Important now will be the Dot Plot system, which visualizes the mood among the members of the bank. If we observe a change in individual members' opinion to support the increase, GBP will most likely be able to recover but short-term. For its decision, the central bank will highlight the uncertainty surrounding Brexit.

At the end of the week, the meeting of OPEC will also be of no less importance, the end of which remains unclear because the agreement between members is crackling. Saudi Arabia and Russia, who backed the abstraction program, have sharply changed their mining policy and are currently pushing to raise the upper limits to full-scale mining. In words, the agreement continues to receive support from a large portion of OPEC's 24 members, but a massive increase in yields is now being observed, last seen when its price was around $ 25- $ 30. In other words, the race for who will pump and sell more oil starts. If our story is to be measured, then we can very soon expect a strong collapse of black gold.

Economic calendar for the week 18.06. - 22.06.2018

Monday
Holiday in China and Hong Kong
02:50 Japan - Trade Balance
20:30 Europe - Speech by Mario Draghi, President of the ECB

Tuesday
04:30 Australia - RBA Report on Monetary Policy
11:00 Europe - Speech by Mario Draghi, President of the ECB
15:30 United States - Building permits

Wednesday
01:00 New Zealand - Westpac Consumer sentiment
01:45 New Zealand - Current account
02:50 Japan - BOJ report on monetary policy
09:00 Germany - PPI
13:00 United Kingdom - Factory orders
16:30 USA - Speech by Jerome Powell, Fed Governor
16:30 Europe - Speech by Mario Draghi, ECB President
17:30 US - Crude Oil Inventories

Thursday
01:45 New Zealand - GDP
10:30 Switzerland - Swiss National Bank decision on interest rates
11:00 Switzerland - Press conference of the Swiss National Bank
14:00 United Kingdom - Bank Of England Decision on interest rates
15:30 United States - Philadelphia Production Index

Friday
10:30 Germany - Production PMI
11:00 Europe - Production PMI
15:30 Canada - CPI
15:30 Canada - Retail Sales
Tentative OPEC meeting is left open

Read more:

• Investors pull record amounts out of US stock funds
• Oil rises after OPEC+ says to keep output cuts
• The Weakest Currency Of Them All
• China: April growth weakened due to distortions
• IMF cuts global growth outlook again