11:09 September 16, 2023
The coming stock market week will be full of macroeconomic releases and events! In addition, other important central banks such as the Fed, the BoE, the SNB and the BoJ will publish their monetary policy decisions. We have seen increased volatility in the markets, so you can expect even more volatility in the coming days due to the numerous important market events. Many markets will see significant moves in the coming week, but in our opinion markets like GOLD, GBPUSD and S&P 500 are worth a look.
gold
Next week will be extremely interesting for investors due to interest rate decisions from major central banks. For the Gold market The Fed and the BoJ will be decisive. The Fed is expected to keep interest rates on hold on Wednesday, which should theoretically be favorable for gold. The ECB did increase interest rates, but signaled the end of the interest rate hike cycle. In addition, the BoJ will also make a decision on Friday. The market is not expecting a change, but Ueda suggested in a recent interview that an exit from negative interest rates could be warranted by the end of this year. A hawkish BoJ could mean a decline in USDJPY. A weaker dollar could also mean a recovery in gold prices.
S&P 500 / US500
The S&P 500-Index is in an interesting technical structure, which could at the same time indicate a medium-term up or down trend. At Wednesday’s meeting and with the US Federal Reserve’s decision, the latest dot plot chart will be released, which will shed light on the US Federal Reserve’s stance on the current economic situation. The central bankers’ revised forecasts for the path of monetary policy tightening could prove to be a key factor for the future development of US stock indices in the medium term.
GBPUSD
The Fed isn’t the only bank making a rate decision. On Thursday we await the BoE’s decision, which seems to be more of a mystery than the FOMC’s decision. The situation in the UK is difficult as bankers there face huge wage pressures, which is a major factor driving inflation. On the other hand, GDP data points to a further slowdown in the economy. Markets are anticipating a near 69% chance that the BoE will raise interest rates by 25 basis points, but economists are somewhat divided on this point. One thing is certain: the decision itself could increase the volatility of the GBPUSDpair will increase significantly on Thursday.
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