Week Ahead 22 – 26/03: European Council Meeting in Focus

Posted by Lulama Msungwa -
Scope Markets

Key points

  • The markets are relatively busy in the week ahead, with Central Bank speakers expected to give speeches and the most awaited European Council meeting
  • U.S Fed will have a busy week, and key economic events will have an impact on the markets
  • Technical outlook

US dollar

It’s fairly a busy week ahead with the most anticipated European Council meeting on Thursday and Friday expected to influence the Euro markets movement. First, the U.S markets are set to take another busy week ahead, with Fed scheduled to speak for 3-days after Fed chair Powell signalled to keep the interest rate near zero until 2023, even after the policymakers boosted the U.S economic outlook and inflation. 

The Fed chair will set the tone of the market movement on Monday with a speech set on Monday on the innovative digital age and the U.S Central Bank.

On Tuesday, the Fed will testify before the House of representative’s service committee. On Wednesday, the Fed chair Powell will give his testimony before the Senate Banking Committee on the coronavirus relief and Economic security act the Fed spoke about on Thursday during the monetary policy statement.

On Wednesday, the U.S markets will have to look for the Durable Goods data and put more pressure on the U.S markets.

The focus will shift to the U.S GDP data, which will provide the U.S markets, especially the Dollar index, much-needed influence. The initial jobless claims will be key to the market after the numbers climbed in the previous week, showing the labour market recovery’s uncertainty.

Euro

It’s fairly a busy week ahead for the Euro markets, with the most anticipated European Council meeting on Thursday and Friday expected to influence the Euro markets movement. The meeting comes in the wake of Europe’s reopening of the economy in most parts of the Eurozone, and the markets will wait to hear any tone concerning the state of the Eurozone economy.

european council meeting
European Council

On Thursday, traders will brace themselves for the manufacturing PMI data from Germany and the Eurozone Markit PMI data, impacting the Euro markets movement. At the same time, traders will be closely following developments of the European Council meeting.

British pound

It’s a relatively busy week ahead for the Pounds investors as the economic events will aim to set the tone of the market movement and influence the market movement.

The markets will focus on the Claimant count data on Tuesday, followed by the ILO unemployment rate figures. After the key economic data, traders will focus on the BoE Governor’s speech, which could influence the Pounds movement. The BoE speech comes after the Fed signalled the positive outlook for the U.S economy.

On Wednesday, the markets will look out for the consumer price index and the services PMI data for fundamental movement in the pound’s movement.

The focus will be on the BoE governor’s, which will be the last speech from the Central Bank, and the pound traders will watch the news closely.

Yen

The Yen traders will focus on the monetary policy minutes for the week ahead.

Other markets

  • The U.S investors will continue to assess the Tax hike that could threaten the U.S heavy tech stocks’ rally as Joe Biden’s administration move forward to apply the agenda.
  • The rally in the Bond yields will be monitored closely in the week ahead as the market continues to rally above 1.60%, putting pressure on the U.S tech-heavy stocks.
  • Crude oil experienced its worse movement since September 2020, as demand worries affect the market. However, Oil affected demand will not last as the coronavirus vaccine, and relief aids could lift the price movement.

Technical outlook

Crude Oil

The Crude oil market got hammered on Thursday’s trading session, with the market losing more than 2% to touch the demand level at $58.

Crude oil WTI Futures, 19.03.2021 Scope Markets
Crude Oil daily timeframe

Should the market fail to breach the demand level, the Oil price could rally up above the 60% level.

S&P 500

The index has enjoyed a recent rally in the markets as the Bonds yields take a knock from its rally that has affected the U.S stocks movement.

european council meeting
S&P 500 daily timeframe

The index rally will continue to be affected by the Yields movement, which threatens the bullish outlook of the market.

The market trades within an upside channel.

Share this article:

Disclaimer: The article above does not represent investment advice or an investment proposal and should not be acknowledged as so. The information beforehand does not constitute an encouragement to trade, and it does not warrant or foretell the future performance of the markets. The investor remains singly responsible for the risk of their conclusions. The analysis and remark displayed do not involve any consideration of your particular investment goals, economic situations, or requirements.

Funding Methods

Scope Markets
Scope Markets
Scope Markets
Scope Markets
Scope Markets
Scope Markets
Scope Markets
Scope Markets

Awards

Scope Markets
Scope Markets
Scope Markets
Scope Markets

Scope Markets offers institutional and retail trading services to businesses and traders worldwide. Our top management team has more than 20 years of experience in the industry, and we are proud of the solid partnerships we build over the years. Whether it's a business or individual, Scope Markets has a wide range of trading solutions that are compliant, flexible, cost-efficient, innovative, and place the client first.

Contact Us

Registered address:
5 Cork Street, Belize City, Belize C.A.

Email:
customerservice@scopemarkets.com

Tel:
+44 2030 516959

Risk Disclaimer

Please note that forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors. Trading in financial instruments may result in losses as well as profits and your losses can be greater than your initial invested capital. Before undertaking any such transactions, you should ensure that you fully understand the risks involved and seek independent advice if necessary. Please read and ensure you fully understand our Risk Disclosure.

Legal Information

Scope Markets Ltd is a company registered under Belize with Registration Number 145,138. Scope Markets Ltd is authorized and regulated by the International Financial Services Commission of Belize (“IFSC”) under the license numbers 000274/58 and 000274/57. The registered address of Scope Markets Ltd is, 5 Cork Street, 1708 Belize City, Belize.

Restricted Regions

Scope Markets does not offer its services to the residents of certain jurisdictions such as EU Member States, Iceland, Norway, Liechtenstein, Afghanistan, Democratic People's Republic of Korea, Ghana, Iran (Islamic Republic of), Iraq, Libya, Mongolia, Myanmar, Nicaragua, Panama, Somalia, Syrian Arab Republic, Uganda, United States of America, Yemen, Zimbabwe and Canada. Please check Restricted Countries.

This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy.

© Copyright 2020 Scope Markets. All Rights Reserved.