Central Banks Set for Rare Confluence as Markets Prepare for Volatility

The past week was marked by a sharp increase in oil prices, with Brent contracts gaining over 8% in five sessions and remaining above $104 per barrel.

This rise was compounded by an ambiguous US CPI inflation reading, which shifted investor expectations towards the Fed's hawkish side.

As a result, Wall Street reacted with a pullback throughout the week, with the Nasdaq 100 down about 1.4% month-to-date and the S&P 500 nearly 1.8%, although Friday's session showed an attempt at rebounding.

The real test will come next week, when three major central banks - the US Federal Reserve, the Bank of England, and the Bank of Japan - announce interest rate decisions sequentially over just three days.

This confluence of central bank decisions may trigger heightened volatility in various markets, making it particularly worth watching USDJPY, gold (GOLD), and the Nasdaq 100 index contract (US100).