Several largest American companies will publish their financial results this week. BTCUSD and XAUUSD are skyrocketing. What's going on in the markets?
November 23: Heaven for Day Traders
The RB of New Zealand Monetary Policy Statement
November 23, 03:00 GMT+2
The Reserve Bank of New Zealand (RBNZ) will make its Monetary Policy Statement on Wednesday, November 23, at 03:00 GMT+2. It's the primary way the RBNZ communicates with investors about monetary policy. It contains the interest rate announcement and commentary about the economic conditions that influenced their decision. If the Statement is more hawkish than expected, then the New Zealand dollar will likely strengthen against other currencies.
Last time, the RBNZ met investors' expectations, raising the key rate by 50 basis points. As a result, the NZDUSD experienced extreme volatility gaining around 700 points right after the Statement and losing 800 points within the next four hours.
This time, investors expect the RBNZ to hike the rate by another 75 basis points.
- If the Statement is more hawkish than forecasted, the NZD will likely strengthen against other currencies.
- If the Statement is more dovish than forecasted, the NZD will likely weaken against other currencies.
Instruments to trade: NZDUSD, NZDJPY, EURNZD.
US Flash Services PMI
November 23, 16:45 GMT+2
Markit, the company providing independent data, will announce the US Flash Services PMI on Wednesday, November 23, at 16:45 GMT+2. It's a leading indicator of economic health. Businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
Currently, the financial markets are pricing in a 50-basis-point rate hike in December and a 25-basis-point rate hike in February. Although, the release might not affect the Fed's decision regarding the rate change at the December meeting. It might influence the rhetoric regarding action at the February meeting.
Last time, the actual numbers were lower than the forecast. As a result, the US dollar index lost over 2500 points within the next three days.
- If the actual numbers beat the expectations, the USD will rise.
- In other case, the USD will fall.
Instruments to trade: EURUSD, USDJPY, GBPUSD.
FOMC Meeting Minutes
November 23, 21:00 GMT+2
The Federal Reserve will publish the Meeting Minutes of November's session on Wednesday, November 23, at 21:00 GMT+2. It's a detailed record of the FOMC's most recent meeting, providing in-depth insights into the economic and financial conditions that influenced their vote on interest rates.
The upcoming key rate hikes in December and February meetings remain the major topic for discussion among traders and investors. This record will provide valuable information regarding the future of the US monetary policy.
- If the actual data is more hawkish than expected, the USD will go up.
- On the contrary, dovish data will pull the USD down.
Instruments to trade: XAUUSD, EURUSD, USDCAD, USDCHF.
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