A look at the most important events of the past week

China and Japan are at the fore in Asia

The Turkish lira  above the 10 thousand level

There is no talk in the financial and global markets without inflation and the large rise in commodity prices last week, especially after the largest economy in the world recorded a rise in inflation with the highest growth rate in 31 years in the reading issued last week.

Annual inflation in the United States of America is at its highest level since the year 1990 – Fayez Al-Ajmi (fayezalajmi-4x.com) Will the rest of the world join this stage of high inflation, especially since Canadian and British inflation data indicate a higher rise than before during this week?

A quick look at the main events of the past week

Market expectations regarding the date of raising interest rates from the US Federal Reserve dominated the course of events last week after the strong inflation data, as after the US Federal Reserve was separating the completion of the process of reducing bond purchases and raising interest rates, analysts and markets raised bets that the US Federal Reserve would resort to raising interest rates immediately.

The completion of the process of reducing the bond purchase program in July of next year, in addition to the high expectations that the US Federal Reserve will accelerate the gradual tapering process, which is expected to start this month by $15 billion per month and continue until July, as the markets are now pricing in an opportunity of more than 70%, according to the instrument.

CME Group from FedWatch to raise interest rates by the end of July next year. Federal Reserve Chairman James Bullard’s comments Tuesday to CNBC that he expects the US Federal Reserve to raise interest rates twice next year after the completion of the bond-buying program expected in the middle of the year also provided additional support to the market’s expectations.

On the economic data front, the Australian labor market data came below expectations in October, the Australian labor market fell below expectations in October and inflation expectations rose – Fayez Al-Ajmi (fayezalajmi-4x.com)

On the other hand, the Turkish lira is trading at its highest level ever, above the psychological barrier of 10 thousand against the US dollar this morning, Monday, and before the meeting of the Turkish Central Bank at the end of this week, the Turkish lira is approaching the psychological barrier of 10 thousand before the central bank meeting next week – Fayez Al-Ajmi 4x.com)

The latest data released last week was the US consumer confidence released on Friday, which came below expectations in the preliminary reading. Consumer confidence declines in November and the US dollar gains weekly – Fayez Al-Ajmi (fayezalajmi-4x.com)

The general index of the US dollar concluded the weekly session with gains of 0.90% at the close at 95.09, after it tested 95.25 levels during the week at the highest weekly closing level in 16 months (July 2020) and is now trading at 95.00 levels.

This week’s main events Many economic data

, which will have a direct impact on the movements of the pairs, dominate the scene during this week’s sessions, the most important of which are:

– The Reserve Bank of Australia will publish the minutes of its meeting for the month of November tomorrow, Tuesday, in the Asian session, in which there will be many details about the expectations of the members of the bank for the schedule of raising the Australian interest rate.

In the American session, the markets will monitor the US retail sales for the month of October, as it is expected that the US retail sales for the month of October will support the gains of the US dollar, amid expectations of a rise to 1.2%, compared to 0.7% in the September reading.

Consumer price index data, which measures inflation, will be released from Britain and Canada on Wednesday, as markets and analysts expect inflation to rise to 3.8% in the United Kingdom, and therefore any numbers higher than expectations will raise market bets again with inflation data for October that the Bank of England will raise interest rates at its meeting The next, especially since the bank’s inflation target is 3%.

– Canadian inflation, in turn, is expected to rise to its highest level in 18 years, but the Central Bank of Canada so far sees that the rise in inflation is temporary and that it will not raise interest rates until the second half of next year at least, and therefore a stronger rise than expectations in inflation may We are seeing a change from the bank’s point of view and therefore gains in the Canadian dollar.

Japan and China lead the Asian session

in the opening session Data released by the Japanese Cabinet in the Asian session this morning, Monday, November 15, showed that the Japanese economy contracted by 3% on an annual basis in the third quarter of this year ending in September, as GDP growth declined by 0.8% on a quarterly basis, affected by a contraction in spending Consumer spending by 1.1% and investment in non-residential businesses contracted by 3.8%.

Expansion of emergency restrictions and closures in the third-strongest economy in the world after the increase in cases of Covid 19 affected the growth figures, and with the lifting of restrictions now, it is expected that the Japanese economy will exceed this stage in the fourth quarter of this year.

On the other hand, the Chinese data for the month of October came better than expectations, as industrial production improved by 3.5% on an annual basis, compared to 3.1% in the September reading (expectations of 3%), bringing the industrial production since the beginning of the year to 10.9%.

On the other hand, retail sales in the second strongest economy in the world rose to 4.9% on an annual basis, compared to 4.4% in September (expectations of 3.5%).