Three markets to watch next week (17.02.2023)

7:05 PM February 17, 2023

Current week on the markets was a busy one. While the agenda is not so intense next week, assets will have a few chances to move. Flash PMIs for February as well as FOMC minutes may provide some volatility on equity markets while NZD traders will tune in for RBNZ rate decisions. Be sure to watch DE30, US500 and NZDUSD next week!


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Next week will see the release of a set of flash PMIs from Europe for February. Expectations for data from major European economies, like France or Germany, point to an improvement compared to January. However, this improvement is expected to be small with services sector indices remaining below the 50 points threshold. An upside surprise could shore up moods after recent inflation-induced sell-off and help revive the relief rally for indices like DE30.


FOMC minutes are scheduled to be released on Wednesday, 7:00 pm GMT. However, release may not have as much impact on the markets as a lot has happened since the last FOMC meeting. Inflation data came in hotter-than-expected and a number of Fed members struck an even more hawkish tone in their speeches. Nevertheless, some short-term volatility on Wall Street and the USD market should be expected. The next FOMC meeting, scheduled for March 22, will be much more interesting as it will include a new set of forecasts and dot-plot.


The Reserve Bank of New Zealand is scheduled to announce its next rate decision on Wednesday, 1:00 am GMT. Market prices are 44 basis points of tightening and the majority of economists expects a 50 bp rate hike. There were some calls for RBNZ to pause its rate hike cycle amid destruction brought by Cyclone Gabrielle or at least until the full extent of damage is known. Nevertheless, it looks unlikely that RBNZ will adhere to those calls. Accompanying message, however, may be more cautious in the current circumstances. NZDUSD pulled back this week towards 3-month lows.

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