The NFP report for August is behind us, and now the markets are preparing for a week of important decisions from central banks! Next week, banks such as the ECB, the Bank of Canada and the RBA will announce rate decisions. Therefore, markets such as EURAUD, USDCAD and CHNComp are worth watching.
EURAUD
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Create account Try a demo Download mobile app Download mobile appThe coming week will bring decisions from two central banks that will be particularly important for the EURAUD pair - the Reserve Bank of Australia and the European Central Bank. Markets are betting that the RBA will make another 50bp rate hike on Tuesday at 05:30 a.m. BST, and that rates will eventually reach 3.85% in the first half of 2023. Goldman Sachs, on the other hand, expects the ECB to raise rates by 75 bps on Thursday at 13:15 BST, following recent publications that showed record inflation in the Eurozone.
USDCAD
USDCAD is another of the currency pairs that may experience more volatility next week. The Bank of Canada's decision will be made at 3 p.m. BST on Wednesday. The BoC is expected to continue its tightening cycle and raise rates by 75 bps. Additional volatility may also be triggered by Canadian labor market data for August, which will be released on Friday, and the US ISM index for services on Tuesday. Moreover, the BoC's decision may also provide some guidance for the Fed.
CHNComp
This Wednesday, we will learn China's foreign trade data. We should learn this data during the Asian session. Inflation data, on the other hand, will be known next Friday at 02:30 a.m. BST Data from China is currently being closely watched due to fears of economic stagnation due to further pandemic restrictions. China recently decided to isolate the city of Chengdu, with a population of 21 million, joining other major cities such as Shenzhen and Dalian. Further restrictions, particularly in the fall, could have a disastrous impact on the economy and translate into further problems in the global supply chain.
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