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A highly volatile week ahead

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A highly volatile week ahead

The markets are expected to be extra volatile this week. Fed decision, US GDP and Big-tech earnings remain the top economic indicators from the US economic calendar.

STOCK MARKET

Wall Street ended mixed last week on growing concerns about the accelerating number of COVID-19 cases in Asian countries and the impact of a possible US capital gains tax hike.

This week the investors are shifting their focus to the Federal Reserve’s monetary policy meeting. No interest-rate change is expected at the meeting, but market participants will be watching for indications for the 2021-22 rate path.

Apart from the central bank meetings the earnings season continues this week, there are some interesting companies reporting this week which includes,

Monday: TESLA (TSLA).

Tuesday: MICROSOFT (MSFT), ALPHABET (GOOGL), PINTEREST (PINS).

Wednesday: APPLE (AAPL), FACEBOOK (FB), EBAY (EBAY), SHOPIFY(SHOP).

Thursday: AMAZON (AMZN), TWITTER (TWTR), NIO(NIO), MCDONALD'S (MCD)

Friday: EXXON MOBIL (XOM), CHEVRON (CVX).

CURRENCIES

The US dollar recorded its third weekly loss. Asian currencies like the Australian dollar and the New Zealand dollar closed slightly higher last week. The British pound ended the week almost flat at 1.3875 while other major currencies, like the euro and Japanese yen, found some strength in the dollar weakness.

This week I expect a potentially volatile week for the US dollar with the release of gross domestic product (GDP) and FOMC meeting decision.

COMMODITIES

Gold price trading unchanged on Monday ahead of US central bank interest rate decision and statement. During the last week, gold was in high demand due to safe-haven appeal amid virus concerns across Asia and the weaker dollar.

Crude oil prices start this week on a bearish note as the number of coronavirus infections is continuing to climb higher across Asia, raising fears that governments could reimpose restrictions again which could further impede recovery in oil demand. This week the Oil investors and traders should closely watch the fresh updates from the OPEC ministerial meeting scheduled for Wednesday and the US oil inventory report.

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