The market sentiment is mixed, but there are still interesting movements on the market.
5 important things this week will bring us!
- British CPI y/y (Wed, 11:30 MT (9:30 GMT)) – The level of consumer inflation for Great Britain is expected to remain at the same level. If the actual figures are higher, the GBP will rise.
- FOMC statement and Federal funds rate (Wed, 20:00 MT (18:00 GMT) time) – the rate hike is not expected, but the Fed Chair Jerome Powell may provide some comments, which will affect the volatility of the USD.
- Australian jobs data (Thu, 2:30 MT (0:30 GMT)) – The level of employment change is anticipated to advance by 15.2 thousand jobs, while the unemployment rate is forecast to remain at the same level. Higher-than-expected employment change and the lower-than-expected unemployment rate will move the AUD up.
- BOE monetary policy summary and official rate (Thu, 14:00 MT (12:00 GMT) time) – The Bank of England will keep its interest rate at 0.75%. The BOE governor Mark Carney may make some supportive comments for the GBP amid the Brexit uncertainties. Let’s see if the BOE will move the GBP even higher.
- Canadian CPI and core retail sales m/m (Fri, 14:30 MT (12:30 GMT) –If the actual figures are higher, than the forecasts by analysts, the CAD will rise.
- This week we need to be ready for the fresh round of the Brexit news. The British Prime Minister Theresa May will have another Brexit vote at the Parliament. If the Parliament approves the deal this time, Theresa May will go to the European Summit in Brussels to request a short extension to Brexit until June 30. If the Parliament rejects the plan by the British Prime Minister this time, Theresa May will go to Brussels and ask for a much longer extension of the Brexit process. If the requests are rejected by the EU leaders during the European Summit on Thursday, the UK will leave the EU without a deal.
- China’s commerce minister says the foreign trade situation becomes more uncertain for the country.
- Reportedly, the Saudi oil minister says a possible decision to extend output cuts will be made in June.
US Core monthly retails sales will be announced on Friday at 15:30 MT time.
Stock significantly surged: S&P 500 and Nasdaq reached 6-week highs. The market sentiment may deteriorate today as Johnson & Johnson’s Covid-19 vaccine trails have been stopped because of the unexplained illness.
Canada’s retail sales will be out on October 21 at 15:30 MT time. Get ready with us for this event!
The market is resilient ahead of the speeches of Fed’s Powell and ECB President Lagarde, but there are still interesting movements.
The uncertainty over US fiscal stimulus and Brexit, and also rising new virus cases deteriorated the market mood. That’s why we can expect the further rally of the US dollar and the fall of riskier assets today.