Four important central bank news to shake up markets

Important News this week

• Tue, 14th, 14:30 CET CA Consumer price index.

• Wed, 15th, 15:45 CET CA BoC interest rate decision.

• Wed, 15th, 20:00 CET US FOMC interest rate decision.

• Thu, 15th, 13:00 CET UK BoE interest rate decision.

Dollar impact

This week traders will focus on the impact of the interest rate decision of the Fed. It is expected that the central bank will cut rates by 25 basis points, which might cause the Dollar to weaken. Yet, since the impact is expected stock markets might offer further upside position in the short term, due to the added liquidity in markets. The potential move could also help pushing other risky assets like crypto markets to the upside as well as boosting precious metals due to the potential weakness of the Greenback.

Market talk

The interest rate decision in Canada might also cause the Canadian Dollar to weaken. A potential rate cut might elevate the recent weakness of the Canadian Dollar causing in particular the EUR to gear up steam again the CAD. A potential rate cut in the US might help the AUD, which has continued to move higher. The GBPAUD currency pair might then continue to break lower. Despite no change expected from the BoJ the JPY could also move into either direction. The recent weakness might hence continue.

Tendencies in the markets

• Equities positive, USD mixed, BTC positive, ETH stronger, oil weaker, Silver positive, Gold sideways, JPY weaker.