Major stock indices from Europe and US rose sharply this week after recent US CPI data softened the view that the Federal Reserve may exit monetary stimulus soon. Additionally, a strong earnings season boosted market sentiment. Will the upward move continue next week? Be sure to watch US100, AUDNZD and GOLD!
US100
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Create account Try a demo Download mobile app Download mobile appUS100 was a top laggard among three major Wall Street indices this week. While the index began to recover in the second half of the week, it continued to trade below its all-time highs while both US500 and US30 reached new record levels. Monetary policy tightening is seen as especially negative for the tech sector, therefore FOMC Minutes may cause some movements, but tech index may also react to macro data, especially one from the labour market. US retail sales for July (Tuesday, 1:30 pm BST), industrial production (Tuesday, 2:15 pm BST) and jobless claims data (Thursday, 1:30 pm BST) will be the key releases to look for.
AUDNZD
Currency pair may be strongly affected by central bankers next week. Meeting minutes from the RBA will be released on Tuesday (2:30 am BST) while the Reserve Bank of New Zealand will announce a policy decision on Wednesday (3:00 am BST). NZ central bank is expected to hike rates by 25bp. Any other decision could lead to strong price movements. Retail sales and industrial output figures from China (Monday, 3:00 am BST) may also impact currency pair as both economies are closely related to China.
GOLD
Gold reached its lowest level since March at the start of this week. However, precious metal managed to erase some losses in the second part of the week after the US CPI release. A key reading for precious metals traders next week is scheduled for Wednesday - FOMC minutes release at 7:00 pm BST. Report could offer some clues on the Fed's thoughts regarding tapering ahead of the August 26-28 Jackson Hole Policy Symposium where more details are expected.
