CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% 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. 74% 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 (09.07.2021)

16:14 9 July 2021

This week we saw a lot of uncertainty in the markets, largely due to the rapidly increasing number of new COVID-19 infections in Asia. All this affects not only Asian indices, but also Antipode currencies, i.e. AUD and NZD. Next week the RBNZ and the BoC will present their interest rates decisions and theoretically may signal a moderate normalization of monetary policy in the near future. It is also worth paying attention to GDP figures from China and CPI and retail sales data from the US. Be sure to watch NZDUSD, US500 and USDCAD next week!

NZDUSD

The Reserve Bank of New Zealand is set to review its monetary policy settings on Wednesday. No major policy changes are expected, however investors will look for more hints on monetary tightening in the coming months. Intensifying inflation pressures are the main driver underpinning expectations of November interest rate increase amid labour shortages and supply chain disruptions. NZD traders should also pay attention to the Q2 GDP readings from China which will be released on Thursday as both economies are closely related to each other.

US500

The S&P 500 reached a fresh all-time high on Wednesday following publication of FOMC minutes, however fears of slowing growth and worries that new Covid-19 variants could stall the global economic recovery led to declines on Thursday. Investors await Q2 earnings season to kick off next week for an update on the private sector recovery. Markets may also react to the key macro data. US CPI figures for June will be released on Tuesday and may indicate whether inflation in the United States is actually only of a temporary nature. It is already expected that CPI inflation for June will slow down to 4.7% YoY from 5.0% YoY in May. If, on top of that, the Fed shifts its rhetoric a bit back to ultra-dovish, we could see further gains on Wall Street. PPI figures on Wednesday, jobless claims on Thursday and retail sales data on Friday round up the calendar.

USDCAD

Next week central bank meetings besides New Zealand will also be held in several other countries including Japan and South Korea. However, the BoC meeting, which will take place on Wednesday, arouses the greatest interest among investors. Markets expect that the BoC will taper QE asset purchases further this month encouraged by robust growth prospects. Purchases are expected to fall to C$2 billion per week by month-end, down from the current C$3 billion.

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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