Comments from Fed members were the main drivers of moves on the global markets this week. While Fed speak will always be in the center of the market's attention, there are other events scheduled for next week that will capture investors' focus. Be sure to watch US100, EURJPY and USDTRY in the coming week!
US100
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appNasdaq-100 (US100) was one of the worst performing Wall Street indices this week. The recovery move from the beginning of the week was erased as more and more hawkish stance of Fed members dented the outlook for tech shares. US100 is threatening to make a more decisive break below the 15,550 pts support. Wall Street earnings season is slowly getting started and Netflix will be one of the first Nasdaq-100 members to report results after the close of Thursday's session next week. However, will earnings be enough to break away from tightening-induced gloom?
EURJPY
The Bank of Japan is set to announce monetary policy decisions on Tuesday during the Asian session. No change in rates is expected, but economists see a chance for the BoJ to adjust its view of inflation risks for the first time since 2014, what will have an impact on its future policy decisions. ECB minutes are also due next week (Thursday, 12:30 pm GMT). The ECB announced the expansion of its APP programme at its latest meeting and voiced concerns over risk to growth. EURJPY pulled back this week amid inability to break above the 131.40 zone.
USDTRY
The situation on the Turkish lira market stabilized after a volatile ending of 2021. However, elevated volatility may return to the TRY market next week as CBRT is set to announce its next monetary policy decision on Thursday, 11:00 am GMT. Markets expect Turkish central bankers to leave rates unchanged this time after announcing that room for further rate cuts may have run out. USDTRY traded sideways in the 13.60 area recently. The pair became somewhat more active at the end of this week, but moves were nowhere as big as in December.
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.
