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Exciting week on the financial markets

The coming week promises a lot of excitement on international financial markets, with important appointments in various areas of the global economy. Depending on the results, the financial markets could come vigorously moving this week.

Takes the IMF the Chinese yuan in the SDR basket?

On Monday convenes the Board of the IMF, and it is very likely that at the meeting the inclusion of the Chinese yuan in the IMF's SDR basket will be decided. This includes so far only in the US dollar, pound sterling, euro and Japanese yen. A inclusion of the yuan in this group would be an elevation to the peerage equated with which the IMF pronounce absolute trust to the Chinese currency to be. The inclusion is considered safe, since IMF head Lagarde this has already indicated two weeks ago. As a result, currency pairs with the yuan could start to move vigorously.

Notes on US rate hike by Yellen speeches expected

The possible increase of US interest rates at the FOMC meeting on December 16 employs all market participants. This week, the Fed chair Janet Yellen holds two speeches, of which further hints about the possible action by the Fed are expected. On Wednesday she speaks at the "Economic Club of Washington" about the economic outlook in the United States, and on the following Thursday the same subject is content of her speech at a committee in the US Senate. For more information on an imminent rate hike in December, the upward trend of the US dollar could strengthen further, while a missing hint could result lead to a slight correction in some currency pairs .

ECB Decision on more bond purchases is imminent

On Thursday the ECB's Executive Board comes together, and it is very likely that at this meeting shall be decided to extend the program for the purchase of bonds and other securities. In the past few weeks ECB President Mario Draghi has missedno oppurtunities, to point out the willingness of the ECB to further stimulus measures. Another measure is a further lowering of the deposit rate for banks at the ECB, that should encouraged the banks to a more generous lending. The reason for the pending measures is to raise the continous weak inflation in the euro zone. Through the continuous announcement of possible measures, these are probably already partly included in the rate of the euro . Nevertheless, the downward trend of the single currency could accelerate following a decision by the ECB.

US employment data and OPEC meeting on Friday

On Friday the US jobs data for November will be released. After the data in the previous month have already resulted to a strong appreciation of the US dollar, similarly good data could reinforce this again. In this case, the Fed is running out of arguments, which still could speak against a modest raising of interest rates.

Eagerly the upcoming Friday meeting of the OPEC countries in Vienna is expected, to find out whether the oil production of the OPEC members will be reduced. While the rich OPEC countries, such as Saudi Arabia, so far showing no interest in a reduction, the smaller members like Venezuela are trying to come to reduction. Currently the state budgets of the major producing countries showing a large deficit, so that a reduction in a small extent is possible what could drive oil prices upwards.

Along with the many other announcements in the economic calendar this week, the financial markets should definitely not be boring.

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