Major central banks announced their final 2021 policy decision this week and markets are starting to look towards the Christmas period. Magnitude of data releases and central bankers' speeches is expected to be small into the year's end. Next week will also be a bit shorter as a lot of markets will remain shut on Friday. Nevertheless, traders should still keep an eye on US100, GOLD and EURTRY!
US100
The Federal Reserve announced an acceleration of QE tapering on Wednesday and the newest dot-plot showed that the median of Fed members expects 3 rate hikes next year. While US indices initially gained after the meeting, bounce quickly faded and markets started to move lower. Tech Nasdaq-100 (US100) was the most vulnerable and tested 2-week lows. Will Santa rally finally arrive on Nasdaq or has the Fed crushed hopes for tech bull market continuation?
GOLD
Gold caught a boost following the FOMC meeting in spite of the US central bank announcing policy tightening. However, unlike stock markets, precious metals managed to maintain the bounce with gold moving to the highest level since late-November at the end of the previous week. Monthly US PCE inflation data for November will be a key event for gold traders next week (Thursday, 1:30 pm GMT). Market expects core measure to accelerate to 4.5% - the highest level since 1989.
EURTRY
Neither the Central Bank of the Republic of Turkey, nor Turkish President Erdogan is lending Turkish currency a helping hand. Another rate cut, replacement of 2 finance ministers and announcement of a 50% boost to minimum wage sent Turkish lira to new record lows. EURTRY starts to look towards the 20.00 handle. Central bank's FX intervention failed to help the currency and muted trading in pre-Christmas period may lead to even greater volatility on TRY market.
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