The Week That Was and The Week Ahead

The excitement of the previous week is still resonant in the markets after the Federal Reserve increased its rate hike by another 25 basis points to a 0.75% to 1.00% on Wednesday. That was symbolic as last Thursday was the 2008 financial crisis 8 years anniversary.

Markets were also relieved by the Dutch election results as it seems that the Dutch government will be able to maintain its stable coalition. The Eurozone will face elections in various countries during the rest of the year and many analysts considered the Dutch elections to be a predominant of the upcoming Eurozone elections.

Major central banks held their monetary policy unchanged during the previous week with BoE, BoJ and SNB policies remained unchanged. The banks will maintain their stimulus programs until further economic indications might shed light on global economy. In particular, the Bank of England will stay put as the UK parliament is doing its first divorce steps from the Eurozone.

While we hear analysts’ predictions of a near stocks crisis, markets reacted positively to the latest developments and continue to trade steady.

Gold climbed during last week to close at 1229 as the Fed’s rate hike boosted gold prices. The G-20 pledge will be a major role for gold prices as the decision to drop free-trade is likely to add concerns.

The Week Ahead

The week ahead markets will continue to seek answers for the unsolved question of US rate hikes during 2017. The Fed Chair, Janet Yellen will deliver a speech at the Federal Reserve System Community on Wednesday at 12:45 GMT. Apart from Yellen, markets will focus on other Fed members speakers to predict their policy economic outlook.

Investors will also adapt the consequences of the G-20 meeting on Friday and Saturday after the Trump administration came out with their hands on top to drop a pledge of anti protectionist, free-trade and climate change funding.

In the UK, Inflation Rate will be published on Tuesday at 9:30 GMT, CPI is expected to rise to 2.1% from previous 1.8% a month earlier. Retail Sales will be released on Thursday at 9:30 GMT and expected to also rise by 0.4% compare to decrease of -0.3%.

In Europe, the Eurozone consumer confidence will be published on Thursday at 15:00 GMT and expected to rise to -4.9 compare to -6.2. The Eurozone is also due to publish its Markit Manufacturing PMI on Friday at 9:00 GMT. The data is expected to hold steady at 55.3 compare to 55.4 a month earlier.

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