The XTB Weekly Outlook – Three Markets to Watch Next Week (11/19/2022)

The next week of trading ahead will be shorter, at least in terms of market liquidity, as US markets and traders closed Thursday and Friday due to the Thanksgiving celebration will have free (or only shortened trading). There will be many central bank related events in the next week as the RBNZ (Central Bank of New Zealand) and CBRT (Turkish Central Bank) rate decisions will announce, while the Fed and ECB will release minutes of their latest meetings. Watch for GOLD, NZDUSD and EURTRY next week!

GOLD

The FOMC Minutes will be released next Wednesday at 19:00 GMT. The policy statement from the last Fed meeting was seen as “dovish” (a journalistic term to describe politicians or governments that prefer to use peaceful and diplomatic methods to get things done rather than the use of force and pressure), but the likely followed “Most hawkish” Powell Conference ever. Fed members’ speeches since the meeting have also been mixed, with some attempting to convey a balanced message while others, such as B. Bullard, were consistently hawkish. Given that the policy statement was rather dovish, there is a good chance that the minutes will also be dovish, leading the USD down and gold up could drift.

NZDUSD

NZDUSD is likely to move after Wednesday night’s FOMC minutes release. However, the currency pair will also be moving earlier in the day as the RBNZ is set to announce monetary policy decisions at 1:00 GMT. The Reserve Bank of New Zealand is expected to hike interest rates by 75 basis points after already delivering a string of 50 basis point rate hikes. the high inflation is seen as the main reason for these expectations. However, some say that the recent weakness in New Zealand’s housing market could prompt the RBNZ to hike rates by another 50 basis points.

EURTRY

The ECB will publish the minutes of its last meeting on Thursday at 12:30 GMT. However, the release could be a “non-event” as the key takeaway from the session was the changes announced on the TLTRO mechanism were. This concerns in particular the change in the conditions and the possibility of early redemption of the bonds. The minutes could therefore reinforce the hawkish message announced during the meeting and recently confirmed in speeches by ECB members. EURTRY Could also be active on Thursday as the CBRT is due to announce a rate decision (11:00 GMT) with the main rate expected to remain unchanged at 10.50%.

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