That day has come, guys! The Fed will hold a meeting at 21:00 GMT+3. It can be a highly impactful event. The markets expect the bank to hint about the timing of tapering.
What will move the market on August 9-13?
The week is going to be interesting for traders! Eurozone’s ZEW Economic Sentiment, US Inflation Rate, and OPEC+ meeting will shake the markets. Besides, the earnings season is almost over. Among the last companies to reveal their earnings results for the second quarter will be eBay on August 11 and Walt Disney on August 12. Don’t miss the releases!
The most important currency for the Forex market is the US dollar. Thus, traders will await eagerly the US Inflation Rate report on August 11. If inflation is greater than expected, the Fed may taper bond buys sooner than initially thought, and this move in turn will push the USD up. If it is the case, USD/JPY may reach the psychological level of 111.00. Speaking about EUR/USD, the USD looks stronger as the Fed is likely to tighten the policy earlier than the ECB, that’s why the long-term forecast for EUR/USD is mildly bearish.
Investors focus on eBay and Disney this week. The stock price of Disney has been at a relatively low level after Black Widow star Scarlett Johansson sued Disney. However, the reopening of its theme parks and cruise lines will help the House of Mouse to grow further. Besides, its Disney+ streaming services are adding tailwinds. It may hit $185.00 if the earnings are strong. The stock of eBay has been falling for the last two weeks, but the better-than-expected Q2 data may help it to recover the losses.
Oil & metals
It will be a crucial week for oil. The OPEC+ alliance will meet on August 12 to decide how much oil countries will pump. The fresh Covid-19 outbreak in China raised concerns as it may lead to the declining oil demand. The last week was tough for oil and if OPEC+ keeps adding more barrels each month, the downtrend may continue. Gold looks weak as well. If the USD stays strong, XAU/USD may move lower towards the $1750 support level.
The following information is not investment advice. Remember that trading is risky. Manage your funds carefully and remember that you can use Take Profit and Stop Loss orders to maximize your gains and limit your losses.
A selloff in stocks stopped. S&P 500 has reversed up from the 100-day moving average. It should be the perfect time to buy the index.
The FOMC, a committee within the Federal Reserve, will hold an important meeting and press conference on September 22 at 21:00 MT time (GMT+3).
Germany, the leading economy in the Euro Zone, will reveal one of the key economic indicators – German Ifo Business Climate on September 24 at 11:00 MT time.
On Wednesday, September 22, Microsoft will be holding a product launch. The event starts at 18:00 GTM + 3.
The Bank of England will hold a meeting on Thursday at 14:00 MT time (GMT+3).