A new week brings a new set of events that can bring volatility to the market. Let’s do a quick overview to see what to expect.
NEW ZEALAND MONETARY POLICY STATEMENT BY RBNZ – NOVEMBER 23rd
The Reserve Bank of New Zealand (RBNZ) will issue its monetary policy statement on Wednesday 23 November at 09:00 GMT+8. It is the primary way the RBNZ communicates with investors about monetary policy. Includes the interest rate announcement and comments on the economic conditions that influenced your decision. If the statement is more aggressive than expected, the New Zealand dollar is likely to strengthen against other currencies. Last time, the RBNZ met the expectations of investors and hiked interest rates by 50 basis points. As a result, NZDUSD experienced extreme volatility, gaining around 700 points right after the declaration and losing 800 points over the next four hours.
This time around, investors expect the RBNZ to hike rates another 75 basis points. If the release is more dovish than expected, the NZD is likely to strengthen against other currencies. If the release is more dovish than expected, the NZD may be weakening against other currencies. Popular instruments during this period would be NZD/USD, NZD/JPY, and EUR/NZD.
US FLASH SERVICES PMI – NOVEMBER 23rd
Markit, the independent data provider, will report US Flash Services PMI on Wednesday, November 23 at 22:45 GMT+8. It is a leading indicator of economic health. Companies are quick to respond to market conditions and purchasing managers have the most up-to-date and relevant information about the company’s view of the economy. Currently, financial markets are pricing in a 50-basis point rate hike in December. and a 25-basis point rate hike in February. Although the statement may not affect the Fed’s rate change decision at the December meeting. Could influence rhetoric on action at February meeting. Last time actual numbers were lower than forecast. As a result, the US Dollar Index lost more than 2,500 points over the next three days.
US FOMC MEETING MINUTES – NOVEMBER 24th
The Federal Reserve will release November meeting minutes on Thursday morning, November 24 at 3:00 GMT+8. It is a detailed record of the most recent FOMC meeting, providing insight into the economic and financial conditions that influenced your vote on interest rates. Key upcoming rate hikes at FOMC meetings in December and February remain the main topics of discussion between traders and investors. This record will provide valuable insight into future US monetary policy. If the actual data is harder than expected, the USD will rise. Conversely, moderate dates will send the USD lower. Popular instruments to be trade at this time would be XAU/USD, USD/CAD, and EUR/USD.