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- What to expect during next week’s trading: Most Important – Rate decision in the USA
What to expect during next week's trading: Most Important - Rate decision in the USA
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Loading...Undoubtedly the most important news event next week is the decision for the rates from the FED on March 15, 2017 at 20:00 (our time). If the rate are lifted this will help the USD. The investors expectations did reach 100%, which means that the probability is high, especially after the better data from today's NFP numbers.
USD – The dollar went up during the week against its pears as the NFP were much better than expected, but the dollar slid as the number for the Average hourly earnings was worst than expected. We continue to be long USD but we will wait for better levels to buy.
GBP- The pound fell, on the delay of the Brexit procedures. Theresa May has difficulties with the initiation of Article 50. We remain negative on the currency.
EUR – The Euro is trading higher today as the ECB said that will decrease the QE from 80 bln. to 60 bln in April. The base rate did remain at 0.00%. Draghi said that he is looking to see a higher inflation before ending QE and/or moving the rates. We do remain short on the currency but at higher levels.
Indices – During this week the indices did show weakness as Dow Jones fell with around 0,68% to $20870, SP500 went down during the week and closed the session close to its opening on Monday for the week. The European indices were about flat on the week as well. As a whole the indices are at record levels and the long positions are risky. There is the possibility of a correction that might start with the raising of the rates next week.
Gold – The previous metal is down partly of the strong dollar at levels of $1200 и $1195. If the rates are lifted then the fall might continue.
Crude Oil – This week it fell roughly 10%, due to the higher than expected stockpiles. Wednesday the reserves were about 4 times higher than expected. Lower Oil price will be negative for the indices and could play a decisive factor for a possible correction of the indices.
The Economic data expected next week:
Monday are not expected many news events, only the Industrial Production from Japan at 06:30 our time.
Tuesday are expected news from China the Industrial production at 04:00 our time, as they are expected to be good. After that awaiting CPI from Germany and at 12:00 ZEW reading from Germany as well. PPI for the USA is due at 14:30.
Wednesday the 15th we expect the most important news of the week and possibly for the month and that is the rate decision of the FED in the USA at 20:00 our time but before that we await the Unemployment number from the UK at 11:30. At 14:30 expect CPI and inflation reading from the USA. Janet Yellen to speak around 20:30.
Thrusday at 02:30 are the Employment change from Australia and after that is the BOJ rate decision tentative at this point but around 05:00-06:00, then the CPI from the Euro zone and As this Thursday is Super Thursday, we will be awaiting also BoE interest Rate Decision as well. It will be a very busy day.
Friday тък the data is not so much with trade balance from the Euro zone at 12:00 and then at 15:15 the Industrial production from the USA as well.
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