US stock markets started falling, while the US dollar is rising. What to expect from
Increased Volatility is Coming
RBA Rate Statement
February 7, 05:30 GMT+2.
The Reserve Bank of Australia (RBA) will make a statement and release a Cash Rate on February 7, 05:30 GMT+2. It's among the primary tools the RBA uses to communicate with investors about monetary policy. It contains the outcome of its decision on interest rates and commentary about the economic conditions that influenced the decision. Most importantly, it discusses the economic outlook and offers clues on the outcome of future decisions.
Experts expect that the RBA will raise the cash rate by 25 basis points to 3.35%, before pausing the tightening cycle. However, in their opinion, a larger hike of 40 basis points coupled with a stated intention to pause could also be on the table.
Last time, the RBA increased the cash rate by 25 basis points, causing an increased volatility in AUDCHF.
- If the RBA overperforms expectations, the AUD may rise.
- Otherwise, the AUD will plunge.
Instruments to trade: AUDUSD, AUDCHF, EURAUD.
Fed Chair Powell Speaks
February 7, 19:00 GMT+2.
Jerome Powell, the chairman of the US Federal Reserve, will make a speech at the Economic Club of Washington on February 7, at 19:00 GMT+2.
On the previous week, Federal Reserve officials made their eighth interest rate increase in a year and signaled two more to come as they continue their fight against rapid price gains. However, they approved a smaller increase than in the past and acknowledged that inflation had finally started to meaningfully ease.
As head of the central bank, which controls interest rates, he has more influence over the nation's currency value than any other person. Traders scrutinize his public engagements as they are often used to drop clues regarding future monetary policy.
- More hawkish comments than expected will help the USD to rise.
- Otherwise, USD may fall.
Instruments to trade: EURUSD, GBPUSD, XAUUSD.
February 10, 09:00 GMT+2.
The Office for National Statistics will release the UK Gross Domestic Product (GDP) m/m change on February 10, 09:00 GMT+2. GDP the broadest measure of economic activity and the primary gauge of the economy's health.
Analysts expect Britain to be the only major industrialized country whose economy will shrink this year after the impact of Liz Truss's brief premiership. Moreover, the International Monetary Fund made a sharp growth downgrade of the UK economy perspectives in 2023 as well.
Last time, the actual result overperfomed the expectations, causing 400-points spike in GBPUSD.
- If GDP data is higher than expected, GBP will rise.
- Otherwise, GBP may fall.
Oil prices are rising and Russia banned the export of its petrol. What's happening in the markets?
Today's main event for the markets is the FOMC Interest Rate Decision, where the US regulator is widely expected to keep the interest rate at the same level of 5.5%.
Inflation in Europe was released better than the forecast. The preliminary fact was published at 4.3%. What's happening in the markets?
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Oil prices are rising while the US government is on the verge of shutting down. How will it affect the market?