Will the Fed finally soften? What will the week bring?

Monday morning in the markets is associated with a slight correction of the increases we observed last week. On Friday, the Nasdaq-100 tech index was at its highest since September thanks to the price of Tesla shares. In the coming days, investors will receive a number of publications and new information that will allow them to look at the market from a slightly different perspective.

Only two more raises?

The highlight of the week for sure monetary decisions of central banks. On Wednesday, the FOMC will decide on the shape of monetary policy. Half an hour after the decision of the American central bank, its president, Jerome Powell, will speak. Historically following the actions of the Fed, the Bank of Canada stopped the cycle of rate hikes. Is it time for the Fed?

The market is pricing in that this year the Americans will raise interest rates twice more - at the next meeting on Wednesday and again in March. However, the Fed has an excuse to raise rates longer. The economy remains strong and the current financial conditions are not restrictive, according to Bloomberg.

The ECB is also to raise interest rates by 50 bp, which will push the deposit rate to 2,5%. What's more, this is not to be the last such a large increase in Europe. As a result, the market spread quite strongly supports EURUSD, which found itself in the resistance area at 1,09.

We invite you to a meeting with the Chief Economist XTB Dr. Przemysław Kwiecień, in which he will focus on the key topic of this week - will the Fed finally soften?

In today's video:

• What will the Fed do?
• EBC tightening leader
• What's next for the results season?

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In addition, due to the very dynamic situation in the world, additional ones will be made available raports Video on the impact of war, pandemic and economic crisis on the global economy.

About the host

Dr Przemysław Kwiecień - Chief economist X-Trade Brokers. Doctor of Economics at the University of Warsaw, graduate of the University of Warsaw and London Metropolitan University (MSc). Holder of the prestigious CFA certificate. He has been working for XTB since 2007, previously he gained experience as an advisor to the Minister of Finance, Mirosław Gronicki, and an economist at Bank Millennium. At XTB, he manages the Analysis Department.

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