Stock markets moved lower this week in a post-FOMC risk-off move. Fed will remain in the spotlight next week with the Jackson Hole symposium beginning on Friday. Speech from Fed Chair Powell on Friday is a key event of the week but ECB minutes and flash PMIs will also draw investors' attention. Be sure to watch US500, EURUSD and DE30 next week.
US500
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Create account Try a demo Download mobile app Download mobile appFOMC minutes release scared markets as they showed US central bankers think it would be good to start QE tapering this year. US500 reached a 1-month low before recovering slightly. Investors' eyes now turn to Fed meeting in Jackson Hole, scheduled for next weekend. Powell's speech on economic outlook on Friday, August 27 at 1:00 pm BST will be the highlight of the meeting. Any hawkish turn from the Fed Chair could cause more pain for equities.
EURUSD
Fed's Jackson Hole meeting is also the most important event of the week for EURUSD traders. However, the main currency pair will also get a chance to move when ECB minutes are released on Thursday at 12:30 pm BST. US data like revision of Q2 GDP report (Thursday, 1:30 pm BST) and Michigan consumer sentiment for August (Friday, 3:00 pm BST) may also add to volatility on EURUSD. The pair dropped below 1.17 on the back of USD strength this week and trades at the lowest level since October 2020.
DE30
Key data from Europe next week will be released on Monday - flash PMI indices for August. Data from France (8:15 am BST) and Germany (8:30 am BST) is expected to show small deterioration in both manufacturing and services sectors. Miss could add to an already sour moods on stock exchanges from this week. DE30 dropped to a 2-week low last month and declines slowed in 15,650 pts area.
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