Account
New to ADSS? Open an
account now to get started.
Already have an account?
Add funds to your ADSS account
Account
New to ADSS? Open an
account now to get started.
Add funds to your ADSS account
Weekly Market Preview
Friday, Jan 19, 2023
Next week, investors are keenly anticipating a series of economic data releases and interest rate decisions from major global central banks. While the Bank of Japan is expected to maintain its current interest rates, the spotlight will be on statements from Japanese monetary policymakers, providing potential insights into the prospect of shifting interest rates into positive territory later this year.
In the aftermath of recently published inflation figures for major global economies, a deceleration in their decline is evident. This slowdown may require a higher for longer interest rates until pushing inflation rates closer to their target of 2%. Geopolitical tensions in the Red Sea have forced companies to alter shipping routes, potentially increasing the cost of transporting goods, especially food items. Such a development could impede the desired decline in inflation rates and hinder central banks from initiating interest rate cuts promptly.
Therefore, it is expected that the Bank of Canada to maintain its current interest rates at the upcoming meeting. Similarly, the European Central Bank is likely to keep rates unchanged especially after the rebound of the CPI headline from 2.4% in November to 2.9% in December. Investors will tune in to the ECB President Mrs. Lagarde’s press conference, where she is expected to rule out cutting rates in the first quarter and consider them in the second quarter.
Markets will also monitor the US GDP data for the fourth quarter of the previous year. Expectations point to a significant decline from 4.9% in the third quarter to 1.8% in the final quarter of the year. Additionally, attention will be paid to the release of the US personal spending index data for December, the Fed’s favorite indicator in gauging inflation levels. Given the decline in this indicator to 2.6% in November, a continued downward trajectory toward the 2% threshold could pave the way for the Fed to commence interest rate reductions, potentially starting from the May meeting.
ADSS
8th floor, CI Tower
Corniche Road
PO Box 93894
Abu Dhabi
United Arab Emirates
Trading Services
ts@adss.com
+971 2 657 2414
Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.
The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.
ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.
