A quick look at the events of the past week

How did the market read employment data?

Mutant omicron spreads

The Australian Reserve and the Bank of Canada are on top of the week’s events

Will the inflation reading change market expectations about interest rates?

With the US labor market data released on Friday at the end of last week, the markets concluded the week that was described as volatile between ups and downs.

As we mentioned at the beginning of the week, the statements were the star of the week for nothing, as the markets began the week with the statements of US President Joe Biden, who expressed his lack of any intention To close the country so that the markets can rest and the uncertainty recedes before the CEO of Moderna comes and raises fears after he indicated that the new mutant may not interact with the current vaccines, so the markets would decline again before Jerome Powell, the President of the US Federal Reserve, came and raised the market heat in his testimony before Congress .

Before we start the weekly report to know what the markets are waiting for this week, we will take a quick look at the most important events of the past week

Tuesday and from Europe, inflation rose at the highest pace in thirty years at the November reading of 4.9% Inflation in the euro area hit a record level before the European Central Bank meeting next week (fayezalajmi-4x.com)

In the American session, we followed the growth data from Canada. The Canadian economy grew by 0.1% in September (fayezalajmi-4x.com)

We also followed in the American session the testimony of Jerome Powell before Congress, where he changed the course of the week’s events, Jerome Powell supports the US dollar in the American session (fayezalajmi-4x.com)

Wednesday in the Asian session We continued reading the Australian growth The Australian economy is shrinking but better than expectations and the Australian dollar is rising (fayezalajmi-4x.com)

On the other hand, the US private sector added about 534,000 jobs in the private sector, the US private sector added 534,000 jobs in November, and anticipation of the manufacturing PMI (fayezalajmi-4x.com) in November.

Before we conclude the American session on Wednesday, the health authorities announced the first case of Omicron in the United States of America, raising fears again, losing American stocks, and increasing safe haven assets and currencies by the end of the session.

Thursday, the markets were not waiting for any strong economic data, with the exception of the meeting of OPEC and the independent producing allies from outside the organization led by Russia, where OPEC + kept its production policy, OPEC + keeps its production policy officially in January, and crude is incurring more losses (fayezalajmi-4x.com)

Friday and in the American session, the US Department of Labor announced the addition of 201 thousand jobs onl in November, and OPEC + keeps its production policy officially in January, and crude is incurring more losses (fayezalajmi-4x.com)

The general index of the US dollar concluded the week at the same opening price, after it fluctuated between ups and downs within the range of 0.90% during the week, to conclude the session at 96.12 levels.

A look at the main events of this week US inflation, the Reserve Bank of Australia and the Bank of Canada are the most important events of the week

How did the market read employment data?

The markets found enough time to analyze the labor market data at the end of last week, where, as we mentioned in our report, the markets are awaiting the US labor market data (expected scenarios) (fayezalajmi-4x.com) that the negative scenario means a temporary decline of the dollar until it explains the data and whether it is negative to the degree that pushes the Fed The US dollar to change its idea of ​​accelerating the pace of asset purchases in the coming period.

The US dollar’s ​​quick rebound after the initial negative reaction means that the markets have priced in that the data did not affect the Fed’s decision to consider accelerating the pace of reducing purchases at next week’s meeting, especially since the unemployment rate fell to a pre-pandemic level of 4.2% coinciding with the high participation rate, and therefore the rate of participation did not increase.

The pricing of the futures market is changing according to the FedWatch CME Group instrument, with an interest rate hike next June with expectations exceeding 70%. American inflation One of the most important data expected to form a better view of what the US Federal Reserve will discuss at its next meeting is the inflation data that comes just one week before the Fed meeting in mid-December. Jerome Powell, in his testimony last week, indicated that it is now time to delete a word temporarily from inflation, and indicated that inflation continues to rise, and the Fed should consider the pace of reducing purchases next week, and hence the importance of inflation data that will be issued Friday at the end of the week.

Inflation in November rose to a record level of 6.2% on an annual basis, and expectations indicate that it will rise to 6.5% in the November reading, and it will confirm the market’s view that the US Federal Reserve may raise interest rates sooner than expected.

Australian reserve

The Reserve Bank of Australia is expected to meet tomorrow morning, Tuesday, to announce monetary policy, as the bank is not expected to make any adjustment in monetary policy at this week’s meeting and to keep interest rates at 0.10%, but it is not excluded that the bank will change its view of interest expectations, especially In light of the current situation and the spread of the new strain Omicron, which threatens global growth.

Central Bank of Canada

Wednesday in the American session, the Bank of Canada will announce its monetary policy, as it is expected to keep monetary policy unchanged and keep interest rates at 0.25%, but with employment data last week that came better than markets expectations and the Omicron axis threat to the economy, will the bank hint that it will intervene in early 2022