Weekly Market Pulse: Mar. 27 – Mar. 31, 2023
In this video you will find out upcoming releases that may help you in trading.
WEEKLY FOREX FORECAST; March 23, BoE Interest Rate DecisionWEEKLY FOREX FORECAST; March 23, BoE Interest Rate Decision
The British pound is facing volatility and uncertainty in the market this week as the Bank of England (BoE) is seen keeping up its benchmark policy rate hike. The central bank is likely to deliver a 25 bps rate increase this Thursday, March 23, raising the key policy rate from 4.0% to 4.25%.
At the same time, traders should follow the BoE MPC Meeting Minutes and the speeches as if there is any sign of a potential pause at the next meeting, it could weigh heavily on the GBP. But in case the BoE signals more tightening ahead, consequently, the GBP rally could get fresh legs.
WEEKLY FOREX FORECAST; March 22, Fed Interest Rate Decision
Due to the takeover of Credit Suisse by UBS and the announcement of additional liquidity by central banks, the markets have significantly market mood improved.
At Wednesday’s Fed meeting, investors should follow the policy statement and a new summary of Economic Projections (growth, inflation, and unemployment rate forecasts plus the dot plot) as the data can cause high volatility in the market.
The Fed is widely anticipating hiking its benchmark rate by 25 bps, as inflation is still running well above the central bank’s target rate. Meanwhile, traders and economists are divided on whether the Fed will raise its benchmark rate by 25 bps on Wednesday or not.
WEEKLY FOREX FORECAST; US CPI; ECB Interest Rate Decision
This video covers such economic releases as the US CPI readings, due on Tuesday, March 14. Since it is the last top-tier economic release before the Fed’s meeting, which is scheduled for March 22. We have to keep an eye on the results, as If the US CPI figures are hotter-than-expected, then investors could see a higher basis point hike from the Fed, whereas if the reports show a decline, then might be a lower basis point hike.
In the meantime, on Tuesday, investors need to watch out for the UK wage growth and unemployment figures, the results might have a significant impact on the GBP. Especially, if the figures of these releases are as the forecast, which will be a signal that the UK labor market is in a way of softening. Consequently, that may be raising bets of the BoE lower interest rate hikes, weakening the Pound. While the higher readings, would likely strengthen the BoE interest rate hike bets and give momentum to the Pound.
With inflation in the spotlight, the ECB will deliver its March monetary policy decision on Thursday, March 16.
As Christine Lagarde mentioned last week, that “very, very likely” that the ECB will raise interest rates by another half a percentage point at its meeting in Frankfurt and investors will find out more clues about the ECB’s future moves.
WEEKLY FOREX FORECAST; US CPI; ECB Interest Rate Decision
This video covers such economic releases as the US CPI readings, due on Tuesday, March 14. Since it is the last top-tier economic release before the Fed’s meeting, which is scheduled for March 22. We have to keep an eye on the results, as If the US CPI figures are hotter-than-expected, then investors could see a higher basis point hike from the Fed, whereas if the reports show a decline, then might be a lower basis point hike.
In the meantime, on Tuesday, investors need to watch out for the UK wage growth and unemployment figures, the results might have a significant impact on the GBP. Especially, if the figures of these releases are as the forecast, which will be a signal that the UK labor market is in a way of softening. Consequently, that may be raising bets of the BoE lower interest rate hikes, weakening the Pound. While the higher readings, would likely strengthen the BoE interest rate hike bets and give momentum to the Pound.
With inflation in the spotlight, the ECB will deliver its March monetary policy decision on Thursday, March 16.
As Christine Lagarde mentioned last week, that “very, very likely” that the ECB will raise interest rates by another half a percentage point at its meeting in Frankfurt and investors will find out more clues about the ECB’s future moves.
Weekly Market Pulse: Mar. 13 – Mar. 17, 2023
In this video you will find out upcoming releases that may help you in trading.
