Tense situation around Ukraine is expected to dominate market moods next week as well. Possibility of a Russia-Ukraine military conflict remains high and markets are volatile. However, there will also be some macro events that may also result in a volatility boost on some markets. Be sure to watch DE30, OIL and NZDUSD next week!
DE30
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Create account Try a demo Download mobile app Download mobile appWhile US traders will be off for holiday on Monday, traders from Europe will have plenty of interesting reports to watch. Flash PMI indices from the European Union and the United Kingdom will be released throughout the morning. The biggest attention as always will be on readings from France (8:15 am GMT) and Germany (8:30 am GMT). Market expects slightly higher services readings and mostly flat manufacturing readings. Releases may provide some short-term volatility for DE30 but Russia-Ukraine tensions will remain the main driver of moves.
OIL
Oil prices jumped as the situation around Ukraine became more tense and dropped on signs of de-escalation. Price of crude is very vulnerable to changes in the sentiment around the Russia-Ukraine conflict and it is unlikely to change any time soon. On the other hand, reaching an agreement with Iran is said to be imminent and it could exert some serious pressure on prices. Next week looks to be very interesting for oil traders and following newsflow will play a key role.
NZDUSD
The Reserve Bank of New Zealand is expected to deliver another rate 25 basis point hike next week and set the main rate at 1.00%. The Bank will announce its decision on Wednesday at 1:00 am GMT. This would be a third 25 bp rate hike over the course of 3 meetings. However, as RBNZ rhetoric has been very hawkish, there was some speculation around a possibility of a 50 basis point rate hike next week. In any case, there is a scope for a surprise and some market volatility.
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