Earnings Reports and Interest rate decisions, Banks again will be in the spotlight.

In the week ahead and after fantastic results of banking earning reports, The VIX index falls to its one-year low, and Wall Street observed new records. Besides earnings report, we must closely watch major central banks' Interest rate decisions and policy meetings in the week ahead. Let’s check the most important events of the week

Earnings Reports

The latest data from "Refinitv" shows the money flow from Cash, deposits, and bonds market to the stock markets. After such unique banking reports, reading this report is supposed to help Wall Street reach new records after printing new all-time highs one after another. Main reports of the week ahead are Main Airlines, Coca-Cola, Verizon, AT&T, IBM, Snap, and Intel. As we can see in the charts, Main Wall Street indices move above M.A. lines in a clear uptrend, while VIX moves at one year low, confirming more downtrend. Dow Jones looks at 3,450, S and P 500 next target can be above 4,225 and NASDAQ trying to reach 14,350, in case of positive reports. However, some fears are increasing in the market from the overflow of liquidity by governments which must be taken more seriously by market participants.

Central Banks meeting meetings!

After strong beats across banking stocks earning reports, we have central banks in the spotlight. Four major central banks will hold interest rate decisions and monetary policy meetings in the week ahead. Tuesday People's Bank of China and Reserve bank of Australia, Wednesday Bank of Canada and Thursday, European Central bank expecting to have some surprises for market participants.

Australian central bank is not happy with the Aussie rate, as they need lower exchange rates for their currency to increase their exports, so more pressure on Aussie is what we have to wait for, after the meeting.

On the other hand, the People's Bank of China seems happy with steady market expectations to support the Yuan. 6.53 is the key pivot point of Yuan against USD. Holding the current policies, supposed to keep the paring around this level.

On Wednesday, BOC expected to hold the 0.25% interest rate but reduce its GoC bond purchases from $4 billion to $3 billion per week, discontinuing some emergency liquidity programs. This policy must take back the current supports from CAD to see it losing against its crosses. USDCAD, after the meeting, is expecting to return above 1.26

And finally, ECB. No change in its Interest Rate, but Officials have been emphasized that ECB will continue to provide monetary support for as long as necessary. ECB meeting of this week supposes to have some surprise after previous boring meeting, with no specific policy decision. Euro could not cross the 1.20 fundamental level, and if it can't pass this level before the meeting, we are waiting to see lower numbers of Euro against the U.S. dollar.

Economic Calendar

Other than Earnings reports and the central bank's meeting, Wednesday's inflation data from New Zealand, U.K., South Africa, and Canada will be published. Friday also purchasing manager data from U.K., Germany, Eurozone, and United States will be the primary weekly data.

Energy Market.

On the energy Market, We are waiting for weekly crude oil inventories data from API and EIA while expecting that U.S. stockpiles to fall sharply. With increasing stock markets and lower inventory numbers, the current uptrend rally must hold its power above 60 dollars.