Final pre-Christmas weekend on the markets is just around the corner. While the majority of world's key central banks announced their final decisions of 2023 this week, there is one more institution left to make the announcement - Bank of Japan! Apart from BoJ rate decision, traders will also be offered data from Canada and the United States. Be sure to watch USDJPY, US30 and AUDCAD in the week ahead!
USDJPY
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appMonetary policy announcement from the Bank of Japan, scheduled for Tuesday, 3:00 am GMT, is a key event of the next week. USDJPY dropped almost 7% off the mid-November highs on hopes that Bank of Japan is preparing for an exit from negative interest rates. Expectations are high and while BoJ may not raise rates next week (money markets expect rates to be left unchanged), failure to provide a hawkish guidance would be seen as a big disappointment. This could lead to JPY erasing recent gains, with USDJPY recovering.
US30
While December's FOMC rate decision is already behind us, US equity indices may see some moves next week on a number of US macro releases. Those include housing market data for November (Tuesday, 1:30 pm GMT), Conference Board consumer confidence index for December (Wednesday, 3:00 pm GMT) and PCE data for November (Friday, 1:30 pm GMT). US Q3 GDP report will be released on Thursday, 1:30 pm GMT, but it will be a revision and is unlikely to have a major impact on the markets.
AUDCAD
AUDCAD is one of the FX pairs that may see some moves next week, especially on Tuesday. This is due to the release of RBA minutes (Tuesday, 0:30 am GMT) and Canadian CPI data for November (Tuesday, 1:30 pm GMT). Release of Canadian retail sales data on Wednesday (1:30 pm GMT) as well as monthly GDP report for October on Friday (1:30 pm GMT) may also increase volatility on the pair. AUDCAD has been trading mostly sideways over the past month, and traders are looking for a catalyst for a breakout.
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
