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In testimony last week, the FED chairman Powell expressed his support for faster tapering the bond purchasing program. Chairman Powell declared that the FED should no longer refer to the rising inflation as a “transitory”. FOMC members even went further by expressing their determination to raise the interest rate in case of another bad inflation report.
Inflation in the US is rising, home prices are skyrocketed, and the economy is overheating. The FED is finally recognizing it and is taking baby steps to avert a disaster. The question is, can the FED chairman Powell guide the market and get the air out of the bubble without popping it. So far, despite the risk-off environment in the past week, there’s no panic. And that is positive. However, that may change very quickly. Hopefully, the FED chairman Powell will find a way to deliver the FOMC statement during the press conference on December 15th, 2021, without moving the markets.
Feel free to review our technical analysis for Nasdaq 100 and Dow Jones Industrial indexes to see the targets for the bearish run. Also, our technical analysis for NZD/USD, EUR/USD, AUD/USD, USD/JPY, AUD/CHF, GBP/CHF, and both the FXCM and the DXY dollar indexes.
Next week the markets will focus on the following economic reports:
Monday 06 December 2021
- Australia – MI Inflation Gauge m/m
- Australia -Job Advertisements m/m
- Australia – AIG Services Index
- New Zealand – ANZ Commodity Prices m/m
- Germany – Factory Orders m/m
- Italy – Retail Sales m/m
- UK – Construction PMI
- UK – MPC Member Broadbent Speaks
Tuesday 07 December 2021
- Japan – Average Cash Earnings y/y
- Japan – Household Spending y/y
- Japan – 30-y Bond Auction
- Japan – Leading Indicators
- China – Trade Balance
- China – USD-Denominated Trade Balance
- Australia – Cash Rate
- Australia – Reserve Bank of Australia Rate Statement
- UK – BRC Retail Sales Monitor y/y
- UK – 30-y Bond Auction
- Switzerland – Unemployment Rate
- Switzerland – Foreign Currency Reserves
- Germany Industrial Production m/m
- Germany ZEW Economic Sentiment
- French Trade Balance
- Euro Area – ZEW Economic Sentiment
- Euro Area – Final Employment Change q/q
- Euro Area – Revised GDP q/q
- Canada – Trade Balance
- Canada – Ivey PMI
- US – Revised Nonfarm Productivity q/q
- US – Revised Unit Labor Costs q/q
- US – Trade Balance
- US – IBD/TIPP Economic Optimism
- US – Consumer Credit m/m
- New Zealand – GDT Price Index
Wednesday 08 December 2021
- Japan – Bank Lending y/y
- Japan – Current Account
- Japan – Final GDP Price Index y/y
- Japan – Final GDP q/q
- Japan – Economy Watchers Sentiment
- French – Final Private Payrolls q/q
- Germany – 10-y Bond Auction
- Italy – Italian Bank Holiday
- Canada – Bank of Canada Rate Statement
- Canada – Overnight Rate
- Canada – BOC Press Conference
- US – JOLTS Job Openings
- US – Crude Oil Inventories
- US – 10-y Bond Auction
- New Zealand – Manufacturing Sales q/q
Thursday 09 December 2021
- Japan – BSI Manufacturing Index
- Japan – M2 Money Stock y/y
- Japan – Prelim Machine Tool Orders y/y
- China – CPI y/y
- China – PPI y/y
- China – M2 Money Supply y/y
- China – New Loans
- Australia – RBA Bulletin
- UK – RICS House Price Balance
- Switzerland – SECO Economic Forecasts
- Germany – Trade Balance
- US – Unemployment Claims
- US – Final Wholesale Inventories m/m
- US – Natural Gas Storage
- US – 30-y Bond Auction
- Canada – Gov Council Member Gravelle Speaks
- New Zealand – BusinessNZ Manufacturing Index
Friday 10 December 2021
- Australia – RBA Gov Lowe Speaks
- Japan – PPI y/y
- Germany Final CPI m/m
- UK – Construction Output m/m
- UK – GDP m/m
- UK – Goods Trade Balance
- UK – Index of Services 3m/3m
- UK – Industrial Production m/m
- UK – Manufacturing Production m/m
- UK – Consumer Inflation Expectations
- UK – NIESR GDP Estimate
- Italy Industrial Production m/m
- Canada – Capacity Utilization Rate
- US – CPI m/m
- US – Core CPI m/m
- US – Prelim UoM Consumer Sentiment
- US – Prelim UoM Inflation Expectations
- US – Federal Budget Balance
