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3:07 PM · 29 April 2022

Three markets to watch next week (29.04.2022)

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A new month will soon began so the time has come for the release of US and Canadian jobs data. However, before that happens investors will be offered rate decisions from three major central banks - Fed, BoE and RBA - and all three are expected to increase rates! Be sure to watch US100, USDCAD and GBPAUD next week!

US100

Time has come for the next FOMC monetary policy decision. Decision and policy statement will be announced on Wednesday, 7:00 pm BST and the market expects not only a 50 basis point rate hike but also a decision to begin balance sheet reduction. As economists seem divided over the magnitude of incoming rate hike as well as pace of QT, a scope for a surprise remains large. Tech index Nasdaq-100 (US100) will be on watch during the release with more hawkish than expected Fed being a big potential risk.

USDCAD

The FOMC decision is a key macro event of the week but there are plenty of other top-tier reports scheduled for release. April's jobs reports from the United States and Canada will be released on Friday at 1:30 pm BST. US ISM indices for April will also be released this week with manufacturing print coming on Monday, 3:00 pm BST and services reading on Wednesday, 3:00 pm BST. Busy calendar during the week is likely to keep USDCAD moving and may help the pair snap a 9-month sideways move.

GBPAUD

While the FOMC decision is a key point of the week, investors will also be offered rate decisions from 2 other major central banks - Reserve Bank of Australia (Tuesday, 5:30 am BST) and Bank of England (Thursday, 12:00 pm BST). RBA is expected to deliver a 15 basis point rate hike - the first rate increase since 2010. A move is also expected from BoE - a 25 basis point rate hike to 1.00%. GBPAUD has recently recovered from a 50-month low but recovery move stalled near 1.7750.

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