The week of truth for the global stock and FX markets

Another week of high volatility and fierce selloffs on the global markets has past. US indices closed at their lowest levels since April. Despite the seemingly quiet start of the new trading week, there are many catalysts that will predestine sentiment. Relations between China and the United States appear to be in the background because of the agreement between them, but Trump's words that he can intervene in Huawei's CEO's case risking the trade war again at the top of the trading rhetoric.

For the moment, the fears of slowing global growth, which every day eat from investor confidence and make purchases very uncertain, remain at the forefront. The new week will give many important economic relics that will testify to whether these concerns are real or simply a result of uncertainty around the end of the year.

After the calm economic calendars for Monday and Tuesday, the remaining three days will provide crucial events that will shape the picture of global indices and decide whether the year will be profitable or not, since US indices are just below the start of 2018 / . Perhaps the most important of them comes as early as Wednesday, when at 21:00 the US central bank will announce its decision on interest rates in the country. The broad expectation is for a promotion that has already been trained by traders, but what will follow then - the positioning of dot dot points by central bankers will be the center of attention for all. How many times will interest rates rise in 2019? Do the bankers reach their limits, or do they have room yet to tighten monetary policy? Will the ECB benefit from this possible passivity to reduce the divide between the policies of the two regions? Does that mean that the dollar is already close to its long-term ceiling, and that the euro is about to offset the long and big losses?

Answers to these and many other questions will be learned in the new, extremely busy and critical week for global markets.

The important economic news throughout the new week:

Monday
12:00 Europe - CPI
13:00 UK - CBI Industrial Trend Orders

Tuesday
02:30 Australia - RBA Meeting Minutes
11:00 Germany - Ifo Business Climate
15:30 USA - Housing Starts

Wednesday
11:30 UK - CPI
15:30 Canada - CPI
17:00 USA - Existing Home Sales
21:00 USA - Fed Interest Rate Decision

Thursday
Tentative Japan - BoJ Interest Rate Decision
11:30 UK - Retail Sales
14:00 UK - BoE Interest Rate Decision

Friday
01:30 Japan - National CPI
11:30 UK - Gross Domestic Product
Tentative USA - Fed Chair Powell Testifies
15:30 USA - Gross Domestic Product
15:30 Canada - Gross Domestic Product

Read more:

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• How top market players on Wall St think 2020 will look like on financial markets
• Money Flow before the start of the new trading week
• Cincinnati Financial Corporation (CINF.US) -Opportunity for long positions
• Asia stocks gain as Fed signals no rate cuts in 2020