Next week’s major data releases are the Fed Minutes from the last policy meeting and the ECB report on the weekly asset purchases under the PEPP program. The market will be primarily interested in the US Central Bank stance on Treasury market developments (rising yields of long-dated bonds), as well as how the ECB is following its promise to substantially ramp up asset purchases in order to counter excessive growth of long-term rates. An increase in asset purchases will have a negative impact on the European currency. At the same time, if from the Fed's report it is believed that the US Central Bank discounts the rise of Treasury market yields, this may fuel further bonds sell-off, which should have a positive impact on the US Dollar.
Next week, Fed Chairman Powell and a number of other Fed speakers will also speak, who may support risk assets by reiterating the need not to rush to raise rates.
On Tuesday, the Central Bank of Australia will hold a meeting on monetary policy, and the EIA will publish a short-term forecast for situation in the oil market. Traders will focus on the EIA's assessment of the rate of recovery in US oil production - one of the main factors restraining rise in oil prices.
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