This week's macro data from the USA was mixed - a high CPI reading and weak retail sales data sent mixed signals about the impact of monetary policy. The release of the FOMC meeting minutes next week may provide more information on why the Fed is not convinced about cutting rates. In addition to the minutes, investors will also receive the Nvidia earnings report - the star of the ongoing AI rally! Remember to watch USDTRY, DE40, and US100 in the upcoming week.
USDTRY
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appUSDTRY is one of the currency pairs that might see some movement this week. This is due to investors receiving the interest rate decision from the Central Bank of the Republic of Turkey on Thursday at 11:00 AM GMT, as well as the FOMC meeting minutes on Wednesday at 7:00 PM GMT. The Turkish central bank is expected to keep interest rates unchanged after 8 consecutive interest rate hikes, which raised the one-week repo rate from 8.50% to 45.00%. The FOMC minutes may clarify why Fed Chair Powell and other central bankers are not convinced about a rate cut.
DE40
DE40, along with other European indices, may experience increased volatility on Thursday morning when preliminary February PMIs from the Old Continent are published. As usual, the focus will mainly be on releases from France (8:15 AM GMT) and Germany (8:30 AM GMT). Market expectations suggest a slight improvement in both the manufacturing and services sectors. However, both sectors are expected to remain in the contraction zone. DE40 is recording record levels, and PMI readings could provide more fuel for growth.
US100
Most of the gains on Wall Street in 2023 were driven by artificial intelligence. Nvidia has become investors' favorite stock in the field of artificial intelligence, and its share price has risen by over 200% last year. On Wednesday after the Wall Street session closes, the company will publish its financial report for the fourth quarter of 2024 (calendar period from November 2023 to January 2024). Failing to meet market expectations could lead to a deterioration in sentiment in the technology sector and a potential correction in the stock market. On the other hand, solid results could drive gains on US100 and allow the index to reach new all-time highs.
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
