Three markets to watch this week (2023)

As Earnings report on Wall Street began this week and investors will get more reports from US financial companies after the weekend, as well as some tech reports. Apart from that, Bank of Japan is set to announce its next monetary policy with attention being on potential policy review. Last but not least, data from the UK, Germany and US will keep GBP, EUR and USD moving. Be sure to watch US500, GBPJPY and EURUSD next week !

US500

Wall Street earnings season for Q4 2022 began this week with reports from major US banks. Reports from more US financial institutions will see daylight next week. Those include Morgan Stanley and Goldman Sachs on Tuesday, as well as reports from Charles Schwab (Wednesday) and State Street Corporation (Friday). On top of that, Netflix and Procter & Gamble are set to release their reports on Thursday. Next week will still be light in terms of earnings releases but the pace of the season, and number of releases, increases in the following weeks.

GBPJPY

The Bank of Japan will announce its next monetary policy decision next week, on Wednesday, 3:00 am GMT. While BoJ is expected to leave rates unchanged, the media hinted that it will conduct a review of side effects of its loose monetary policy. This is seen as another sign that the Bank may abandon its current approach and turn more hawkish soon. GBPJPY is likely to be on the move next week, thanks to BoJ meeting as well as UK data - jobs report for November (Tuesday, 7:00 am GMT), CPI for December (Wednesday, 7:00 am GMT) and retail sales for December (Friday, 7:00 am GMT).

EURUSD

EURUSD may see some action next week as well, thanks to both EUR- and USD-related data released. German ZEW for January (Tuesday, 10:00 am GMT) and ECB minutes (Thursday, 12:30 pm GMT) will provide EUR volatility, while USD may move on retail sales and PPI data for December (Wednesday, 1:30 pm GMT). The main currency pair has held firm recently, climbing above the 1.08 mark this week. USD weakness plays a big part in the move with market pricing inching to a 25 bp Fed rate hike during next meeting, rather than 50 bp rate hike.