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5:20 PM · 13 May 2022

Three markets to watch next week (13.05.2022)

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A massive sell-off in risk assets, especially equities and crypto, was a key theme in the markets this week. While the situation has calmed by the end of the week, it serves as a reminder how volatile and nervous markets are in a current uncertain macroeconomic environment. The upcoming week will be more data-oriented with important macro reports from US, UK and Canada scheduled for release. Be sure to watch US100, USDCAD and GBPUSD in the week ahead!

US100

Global equity markets took a hit this week as expectations of an even stronger monetary tightening started to impact asset prices. Fed's policy is in the center of attention as the world's most influential central bank made a massive hawkish turn. The next FOMC meeting will take place in mid-June but traders will be offered plenty of speeches from Fed members next week, including a speech from Chair Powell on Tuesday. Nasdaq-100 (US100) is one of the most reactive Wall Street indices to changes in monetary policy so tech traders should keep on guard.

USDCAD

USDCAD has been on the rise as of late, thanks to USD strengthening. The pair managed to break above the 1.29 resistance zone this week and rallied to levels not seen since late-2020. Pair is likely to remain active next week as two important macro reports are set to be released - US retail sales report for April (Tuesday, 1:30 pm BST) and Canadian CPI report for April (Wednesday, 1:30 pm BST). Will they provide more fuel for the rally or will they trigger a trend reversal? We shall now in the coming days!

GBPUSD

The British pound continues to underperform against the US dollar with GBPUSD dropping to a 2-year low this week. An unexpected GDP contraction in March triggered another wave of selling on GBP market as BoE expectations of UK recession seem to become reality. GBP traders will watch UK CPI reading for April closely next week (Wednesday, 7:00 am BST). Another acceleration in price growth may hint that BoE will have to hike rates further and it may put additional pressure on the economy and GBP as well.

3 February 2026, 7:04 PM

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