CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Three markets to watch next week

17:52 7 May 2021

Remarks from Janet Yellen on interest rates sent stock markets lower at the beginning of the week. While most major US indices managed to recover in the later part of the week, tech stocks continue to lag. Elsewhere, gold rallied above $1,800 on the back of USD weakening. Be sure to watch GOLD, US100 and GBPUSD in the week ahead. 

GOLD

Gold price made its way above $1,800 handle this week and reached the highest level since mid-February. Weakening of the US dollar provided a boost for precious metals including gold. While correlation between inflation and gold is no longer as strong as it used to be, price growth remains an important factor for precious metals. Having said that, gold traders should keep on guard on Wednesday at 1:30 pm BST as US CPI reading for April will be released.

US100

Nasdaq-100 (US100) has been the worst performing major US index this week. Yellen's comments on possible need for interest rate hike spooked investors. Nasdaq took the biggest hit as companies from the index seem to be the most sensitive to change in the level of interest rates. While Yellen backtracked on her comments later on, US100 is struggling to fully recover. Discussion about the need for policy tightening will only intensify as the time passes and may become an important driver for the index.

GBPUSD

Bank of England said it has slowed emergency bond buying amid improved outlook for the UK economy. Moreover, BoE Governor Bailey said that the UK economy will recover to pre-pandemic levels earlier than expected, thanks to rapid vaccinations and potential for full reopening in June. GBP traders will be offered hints on how the UK economy performed in the January-March period as the Q1 GDP report will be released on Wednesday (7:00 am BST). 

This content has been created by X-Trade Brokers Dom Maklerski S.A. This service is provided by X-Trade Brokers Dom Maklerski S.A. (X-Trade Brokers Brokerage House joint-stock company), with its registered office in Warsaw, at Ogrodowa 58, 00-876 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. X-Trade Brokers Dom Maklerski 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.

Back