Week Ahead – Fed Minutes to be Watched Closely

Author – Connor Woods, Senior Market Analyst

Date: May 23rd– May 27th

Last week, stocks endured their SEVENTH week of downside, unbelievable! This week, traders must watch the most important events explained below.

Fed Minutes – Event of the Week!

The most anticipated event of the week is undoubtably the Federal Reserve meeting minutes. This is due out at 2 am (MYT) on Thursday. The reason it will be so eagerly watched is because traders will want clues at the continuous nature of interest rate hikes, to curb that factor, which is sending markets into a frenzy, inflation. 

Key European Data

There is also key Purchasing Managers' Index data out in Europe across Tuesday. PPI is a “diffusion index based on surveyed purchasing managers in the manufacturing industry.” As a rule of thumb, a figure above 50.0 indicates growth and is seen as positive for the currency, whereas below indicates contraction and negative for the currency.

Andrew Bailey in the Spotlight

Last week the UK (United Kingdom) stole the headlines when its 40-year high Consumer Price Index was released. Now, Andrew Bailey will have to face the public and answer questions about the Bank of Englands strategy in taming inflation. This is bound to cause volatility.

Everyone at Zenfinex wishes you the best trading week. If you would like to know more about the products we offer, feel free to visit www.zenfinex.com.

Disclaimer:  Trading Foreign Exchange is highly speculative and may not be suitable for all investors. The leverage created by trading on margin can work against you and losses can exceed your entire investment. Only invest with money you can afford to lose and ensure that you fully understand the risks involved.