The next week on the markets is all about central banks. Traders will be offered rate decision from Fed, Bank of Japan, Bank of England and Reserve Bank of Australia. On top of that, release of flash PMI indices for March will provide an update on conditions within European economies. Be sure to watch USDJPY, GBPAUD and DE40 in the week ahead!
USDJPY
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile appRate decisions from Bank of Japan and Fed are unquestionably the most important events of the next week. Decision from BoJ, scheduled for Tuesday, is especially drawing attention as Japanese central bankers may decide to deliver a hike and exit negative interest rates. Meanwhile, Fed is expected to keep rates unchanged when it announces a decision on Wednesday, 6:00 pm GMT. However, traders will be offered a new set of quarterly economic projections, which may help set more clear expectations for the timing of the first rate cut, which is now seen either in June or July.
GBPAUD
GBPAUD may see some moves next week as Reserve Bank of Australia is scheduled to announce a rate decision on Tuesday, 3:30 am GMT, while Bank of England will announce its decision on Thursday, 12:00 pm GMT. Both banks are expected to keep rates unchanged. However, money markets see an over-30% chance of RBA cutting rates next week. BoE dropped its hiking bias in February, but is not expected to cut rates before June 2024 meeting.
DE40
Flash PMI indices for March from Europe will be released upcoming Thursday. As usual, the attention will be paid mostly to data from France and Germany, which will be released at 8:15 am GMT and 8:30 am GMT, respectively. Data for February showed improvement in French services and manufacturing sectors, but both indices remained in contraction territory. Meanwhile, situation in German manufacturing sector deteriorated. Data for March is expected to show small improvement in manufacturing sector in both countries, as well as no major changes to services indices.
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.
