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 (04.06.2021)

17:19 4 June 2021

NFP data was released today and now investors will focus on another key reading from the US - CPI inflation for May. Price growth is expected to accelerate further with headline gauge seen jumping to 4.6% YoY. Apart from that, rate decisions from BoC and ECB will keep traders entertained. Be sure to watch these three markets next week!

US500

The S&P 500 (US500) struggled to break above the all-time high reached in the first half of May. While the index continues to trade near record levels, it began to underperform European peers. Inflation, and possible quicker monetary tightening, remains the prime concern of stock investors. US CPI data for May will be released on Thursday, 1:30 pm BST and is expected to show further acceleration. However, the key question is whether the Fed continues to ignore it.

EURUSD

The European Central Bank is set to announce a monetary policy decision on Thursday, 12:45 pm BST. There is a growing consensus that the ECB may decide to extend the period of "significantly higher" PEPP purchases for another 3 months (Q3 2021). ECB members Panetta and Villeroy said that there is no justification for reducing bond purchases just now. As usual, the biggest attention will be paid to Lagarde's presser at 1:30 pm BST. Will the ECB be able to boost the euro after EURUSD dropped to a 3-week low this week?

USDCAD

The Bank of Canada has hit a hawkish note during its latest policy announcement in April. BoC said that it expects slack in the economy to be absorbed in the second half of 2022, while earlier it had expected it to happen in 2023. Will the upcoming rate announcement be a similar hawkish surprise? We shall see on Wednesday at 3:00 pm BST! USDCAD has been trading sideways recently but the BoC announcement may be a trigger for a larger move.

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.

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