Three markets to watch next week (20.05.2024)

The next week may be big in terms of market volatility as there are a number of top-tier events scheduled. Traders will be offered FOMC minutes, earnings report from Nvidia as well as flash PMIs for May. RBNZ decision and macro data from Canada will also be watched closely. Be sure to watch EURUSD, US500 and NZDCAD in the week ahead!

EURUSD

The main currency pair will get a few chances to move next week. The most important macro event of the week is release of FOMC minutes from May meeting on Wednesday, 7:00 pm BST. Fed Chair Powell seemed less hawkish at the May meeting, but stressed that US central bank still does not have enough confidence in inflation to cut rates. Minutes may shed some more light on central bank's reasoning. Apart from that, EURUSD may also see some volatility on Thursday, when flash PMIs for May are released. As usual, attention will be primarily on French and German releases at 8:15 am BST and 8:30 am BST, respectively.

US500

Wall Street earnings season is almost over, with more than 90% of S&P 500 companies having already reported their results. However, there is one more company left to report, whose results are eagerly awaited by investors - Nvidia! Nvidia will report fiscal-Q4 2024 (February - April 2024) earnings on the next Wednesday after close of the Wall Street session. AI-driven rally on Nvidia shares has eased but stock return to ATH area last week. Strong report could help push the stock to new records and fuel gains on the broader market as well.

NZDCAD

NZDCAD is one of the currency pair that may see some more volatility this week. RBNZ is scheduled to announce its next monetary policy decision on Wednesday at 3:00 am BST. No rate move is expected and some banks, like for example ANZ, do not expect RBNZ to make a move before the second quarter of next year! On CAD-side, the pair may move on release of Canadian CPI data for April (Tuesday, 1:30 pm BST) as well as Canadian retail sales print for March (Friday, 1:30 pm BST).