This week was all about central banks. The Fed delivered the biggest rate hike in almost 30 years, the Swiss National Bank unexpectedly hiked rates while the Bank of England stuck to a small 25 basis point rate hike. Monetary policy will remain on watch next week, thanks to Powell's semiannual testimonies and CBRT rate decision. Apart from that, traders will also be offered flash PMIs from Europe. Be sure to watch GOLD, DE30 and USDTRY in the coming week.
GOLD
The Federal Reserve delivered the biggest rate hike in almost three decades this week. However, will this be enough to get inflation under control? And how will it impact prospects for the jobs market and US economy as a whole? Those are questions Fed Chair Powell will likely have to answer during his semiannual testimony in Congress. Hearing in the Senate will take place on Wednesday, followed by a hearing in the House on Thursday. As with everything Fed-related, gold is expected to be on the move
DE30
Sell-off on the global equity markets deepened this week as more and more central banks decided to tighten policy. A decision from the usually-dovish Swiss National Bank was a trigger for a massive sell-off on Thursday. Release of flash PMI indices for May on Thursday will show whether moods within the economy deteriorate in-line with deterioration of market moods. Services and manufacturing indices are expected to deteriorate in both Germany (8:30 am BST) and France (8:15 am BST) but still remain in expansion territory. A beat may provide some relief for DE30 bulls.
USDTRY
Central banks from top developed countries have already announced their June's monetary policy decisions. However, there are still some less-important central banks left to announce their decision and the Central Bank of the Republic of Turkey is one of them. CBRT is expected to announce no change to monetary policy at a meeting on Thursday (12:00 pm BST). Market expects no move but inflation in Turkey has spike above 70% and strong action may be needed to bring it back under control. Turkish lira has been losing ground against US dollar as of late with USDTRY jumping above 17.00.
