Investors are awaiting a busy week in the financial markets, topped by the US interest rate decision and the Consumer Price Index report, the Bank of England and
the European Central Bank as well as the Swiss bank will announce their next monetary policy, and inflation data will be issued in the United Kingdom and of course
apart from many other important economic data from the region European, Australian, retail sales and industrial production in China.
Expectations indicate that inflation will slow in the United States to 7.3% in November, while federal policy makers are set to raise interest rates by 50 basis points
after four consecutive increases of 75 basis points. Expectations regarding the continued decline in inflation indicate that the Fed may reconsider increasing By 25
basis points at their next meeting in February 2023, the events of the coming week also include the Retail Sales report, which is expected to decline by 0.1% on a
monthly basis, which indicates a decline in consumer demand.
In Europe, markets expect the central bank to raise interest rates by 50 basis points after two consecutive increases of 75 basis points, and in the United Kingdom it
is expected to increase the interest rates by 50 basis points after a previous increase of 75 basis points, all previous expectations were assumed to be It gives a
positive morale boost to stock investors, but concern about the final interest rates and the challenge of avoiding recession negatively affected the market's
sentiment, and all of them declined in the last trading sessions of last week.
The most prominent event was the decline in oil prices by more than 10% last week, which is considered the largest weekly pace of decline since April 2020, to
record prices at their lowest levels for this year due to the growing concerns related to the decline in global demand resulting from a possible recession, while
investors continue to evaluate the impact of recent sanctions on Russian oil and the ceiling The G7 with Moscow warning that it may cut oil production in response,
meanwhile, OPEC+ decided to stick with its current policy of cutting oil production by 2 million barrels per day from November until 2023.
All of this makes us expect large and unprecedented fluctuations in the price movement this week, while not excluding sudden movements and without prior
warning, which requires extraordinary attention by investors, and this large amount of economic data may weaken any analysis tool in making forecasts for the price
movement. Here Analysts recommend to rely on support and resistance levels for longer periods of time, and that the technical price levels within the short term will
have no significant importance, for example, the price movement of the Standard & Poor's (US500) will focus on the main levels 4100 as resistance and 3900 as
support instead of focusing Any short-term price levels.
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Figure (1)
The weekly closings of the most important traded financial instruments came as follows:
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Figure (2)
Here are the most important economic dates for this week:
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Figure (3)
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