Three markets to watch next week (08.07.2022)

4:31 PM 8 July 2022

Following the release of the NFP report for June, markets' attention is now shifting to US CPI data for June, which will be released on Wednesday. USD and gold traders will look for hints whether there is a chance for a change in Fed's policy. Speaking of central banks, investors will be offered rate decisions from the BoC and RBNZ which may cause additional volatility on the markets. Be sure to watch GOLD, AUDNZD and USDCAD next week.

AUDNZD

Start investing today or test a free demo

Open real account TRY DEMO Download mobile app Download mobile app

The Reserve Bank of New Zealand is set to review its monetary policy settings on Wednesday. Markets are pricing in a 100% chance of a 50 bps rate hike and a 67% chance of a 75 bps rate hike. However, investors will also focus on comments regarding the future path of rates for the RBNZ. Recently, the central bank suggested that the economy could enter into a recession in 2023 after a weak business opinion reading. Some analysts expect that the pace of interest rate hikes may slow down in the upcoming months. AUDNZD traders should also pay attention to important readings from Australia, which include Westpac Consumer Confidence Index on Wednesday and jobs data which will be released.

GOLD

Release of the NFP report for June was a main event this week. Investors will have to wait for another key report from the US economy until Wednesday, as that's when CPI inflation data for June will be released. Market expects headline price growth to accelerate slightly from 8.6 to 8.7% YoY and core gauge to move from 6.0 to 5.9% YoY. While deceleration would be welcome, it is unlikely to be big enough to discourage the Fed from pausing tightening. A higher-than-expected reading could strengthen the case for a more aggressive approach and have a negative impact on gold.

USDCAD

Next week, central bank meetings besides New Zealand will also be held in South Korea. However, the BoC meeting, which will take place on Wednesday, arouses the greatest interest among investors. The Bank of Canada is expected to hike rates by 75bp to 2.25%. The central bank sees the “neutral” range for the policy interest rate as 2-3% and investors would like to hear whether the central bank still plans to push rates to the top of the range, taking into account the gloomy macroeconomic outlook. US investors await Q2 earnings season to kick off next week for an update on the private sector condition. Markets may also react to the other key US macro data, namely PPI figures and jobless claims on Thursday and preliminary UoM consumer sentiment and retail sales data on Friday.

Share:
Back
Xtb logo

Join over 1 000 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
Description
SERVERID
userBranchSymbol cc 2 March 2024
test_cookie cc 25 January 2024
adobe_unique_id cc 1 March 2025
__hssc cc 8 September 2022
SESSID cc 2 March 2024
__cf_bm cc 8 September 2022
intercom-id-iojaybix cc 26 November 2024
intercom-session-iojaybix cc 8 March 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
Description
_gid cc 9 September 2022
_gat_UA-98728395-1 cc 8 September 2022
_gat_UA-121192761-1 cc 8 September 2022
_gcl_au cc 30 May 2024
_ga_CBPL72L2EC cc 1 March 2026
_ga cc 1 March 2026
__hstc cc 7 March 2023
__hssrc

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
Description
MUID cc 26 March 2025
_omappvp cc 11 February 2035
_omappvs cc 1 March 2024
_uetsid cc 2 March 2024
_uetvid cc 26 March 2025
_fbp cc 30 May 2024
fr cc 7 December 2022
_ttp cc 26 March 2025
_tt_enable_cookie cc 26 March 2025
_ttp cc 26 March 2025
hubspotutk cc 7 March 2023

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name
Description

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence
Language