Three Markets to Keep an Eye for This Week (01.04.2022) by XTB

Crude oil remains one of the most volatile commodities, with the Russia-Ukraine conflict threatening to seriously disrupt supplies. Crude oil will be in the limelight again next week, with markets also anticipating the RBA's decision and the publication of the FOMC minutes. USDJPY, AUDUSD, and OIL.WTI will be a particularly interesting instruments to watch in the next week, as higher volatility is likely.

USDJPY

The FOMC minutes are the week's main macro event. The minutes of the FOMC's quarterly meeting will be published on Wednesday at 7:00 p.m. BST. The minutes will be keenly scrutinized since Fed Chair Powell has indicated that they would contain specifics on the balance sheet reduction conversation. According to reports, the decision to begin quantitative tightening might be taken as early as May. The inclusion of such a scenario in the FOMC minutes might boost US bond rates and the USD. Because USDJPY is one of the USD-linked pairings that responds the most to changes in US rates, it will undoubtedly be widely monitored next week.

AUGUST

The AUDUSD is one of the currency pairings that might see more volatility in the next week. Not just because of the FOMC minutes released on Wednesday, but also because of the RBA's decision. The Reserve Bank of Australia will make its announcement at 5:30 a.m. BST on Tuesday. While the Bank has said that rate rises are not now on the table, the rise in commodity prices and the consequent inflation may compel it to rethink. The AUDUSD recently reached 5-month highs before stalling at the 0.7550 mark.

OIL.WTI

Crude oil has recently stayed in the limelight owing to the market's continuous huge volatility. OPEC+ continues to defy requests to raise output, pushing the US to re-release the Strategic Petroleum Reserve. Next week, executives from major oil companies in the United States are set to testify before Congress on rising oil prices. Questions are expected to be raised regarding idle drilling licenses and if they intend to take any measures to enhance US output. Will this, however, affect prices？ We'll find out in a few days.