Three markets to watch next week (08.10.2021)

Release of the NFP report for September is already behind us but reports from the United States will continue to dominate the agenda next week. FOMC minutes, CPI inflation and retail sales data may keep USD moving throughout the week. On top of that, major US banks will publish their Q3 financial results, launching Wall Street earnings season.

GOLD

FOMC minutes will be released this Wednesday at 7:00 pm BST and may shed more light on a meeting that was by many viewed as Fed's hawkish turn. An important release will also be made a few hours earlier at 1:30 pm BST - US CPI inflation data for September. Those two events combined will make Wednesday an important day for gold traders. Inflation is expected to remain at 5.3% year-over-year - the same level as in August. However, an unexpected acceleration may put pressure on precious metals.

USDJPY

USDJPY retested its post-pandemic highs in the 112.00 area this week. The pair benefited from an improvement in moods and strengthening of the US dollar. However, bulls seemed to struggle with pushing the pair to fresh multi-year highs. USDJPY traders will also watch FOMC minutes and US CPI data closely. Another key report that may have an impact on USD-tied FX pairs will be released on Friday, 1:30 pm BST - US retail sales report for September. Market expects a small drop in the headline gauge and increase in core measures.

US500

Abundance of top-tier economic releases from the United States next week should not distract investors from another important event - beginning of Wall Street Q3 earnings season! As usual, big US banks will be the first to report their financials. JPMorgan will report results on Wednesday, followed by Citigroup, Morgan Stanley and Wells Fargo on Thursday. Report from Goldman Sachs will round up the week on Friday. Reports from the banking sector are often a decent reflection of economic performance of a country and may thus impact the whole market.