The XTB Weekly Outlook ? Three markets to watch next week (12/03/22)

In the coming trading week, there will be no high-profile US economic data like the NFP report, but some notable survey data, including the ISM report for services and Michigan consumer confidence. Apart from that, the main focus will be on the oil market lie as Western sanctions on Russian crude oil come into effect on Monday. Last but not least, the RBA (Reserve Bank of Australia) is expected to hike interest rates to 3.0% or more for the first time since 2013. Watch out for US500, OIL and AUDUSD next week!

US500 / SP500

The release of the November US jobs report is already behind us and while next week’s data scheduled for next week is not nearly as important as the jobs data, some notable survey data will be released. The University of Michigan Consumer Sentiment Index for December is released at 15:00 GMT on Friday. The ISM manufacturing index fell into contraction territory in November and traders are keen to see how the services sector fares.

OIL.WTI

The coming week could be interesting for oil traders as sanctions against Russian oil by sea are due to come into force on Monday 5th December. There is still a great deal of uncertainty about the impact on the oil market and how Russia will respond to countries joining these sanctions. Russian officials have warned that their country will not supply oil to countries that impose restrictions on Russian crude, but whether they will honor that promise remains a mystery as the sanctions themselves are seen as rather mild and ineffective. Of the WTI price was able to halt its slide last week and climbed back above $80 a barrel.

AUDUSD

The Reserve Bank of Australia is due to announce its next monetary policy decision at 3:30 GMT on Tuesday. Expectations for RBA’s next move are mixed – economists see one rate hike by 25 basis points, while money markets only expect tightening by 15 basis points in the coming session. Market opportunities were reduced after October inflation data came in below expectations. Still, even a 15 basis point rate hike would take the RBA’s main rate to 3%, its highest level since April 2013. AUDUSD climbed to near three-month highs this past week, but this move was mostly driven by USD weakness, not AUD strength.

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