Final pre-Christmas weekend on the markets is just around the corner. While the majority of world's key central banks announced their final decisions of 2023 this week, there is one more institution left to make the announcement - Bank of Japan! Apart from BoJ rate decision, traders will also be offered data from Canada and the United States. Be sure to watch USDJPY, US30 and AUDCAD in the week ahead!
USDJPY
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile appMonetary policy announcement from the Bank of Japan, scheduled for Tuesday, 3:00 am GMT, is a key event of the next week. USDJPY dropped almost 7% off the mid-November highs on hopes that Bank of Japan is preparing for an exit from negative interest rates. Expectations are high and while BoJ may not raise rates next week (money markets expect rates to be left unchanged), failure to provide a hawkish guidance would be seen as a big disappointment. This could lead to JPY erasing recent gains, with USDJPY recovering.
US30
While December's FOMC rate decision is already behind us, US equity indices may see some moves next week on a number of US macro releases. Those include housing market data for November (Tuesday, 1:30 pm GMT), Conference Board consumer confidence index for December (Wednesday, 3:00 pm GMT) and PCE data for November (Friday, 1:30 pm GMT). US Q3 GDP report will be released on Thursday, 1:30 pm GMT, but it will be a revision and is unlikely to have a major impact on the markets.
AUDCAD
AUDCAD is one of the FX pairs that may see some moves next week, especially on Tuesday. This is due to the release of RBA minutes (Tuesday, 0:30 am GMT) and Canadian CPI data for November (Tuesday, 1:30 pm GMT). Release of Canadian retail sales data on Wednesday (1:30 pm GMT) as well as monthly GDP report for October on Friday (1:30 pm GMT) may also increase volatility on the pair. AUDCAD has been trading mostly sideways over the past month, and traders are looking for a catalyst for a breakout.
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
