The Bank of Canada will publish the rate statement together with the interest rate on October 28, at 17:00 MT time.
5 important things this week will bring us!
The dovish Fed, the slowdown in Europe and Brexit were among the things that moved the market last week. Let’s look at this week’s opportunities.
- Rate statement by the Reserve bank of New Zealand (Wed, 03:00 MT (01:00 GMT)) – The rate hike is not expected, but the RBNZ governor Adrian Orr may throw some hints on the possible changes to the central bank’s monetary policy in future.
- Speech by the ECB president Mario Draghi (Wed, 10:00 MT (8:00 GMT)) – The European Central bank’s president Mario Draghi will make his speech at the ECB and Its Watchers conference in Frankfurt. We may expect some supportive comments for the EUR.
- Canadian trade balance (Wed, 14:30 MT (13:30 GMT)) – According to the forecasts, the trade deficit of Canada will likely show less decline, than in the previous month. If the actual figures are greater, the CAD will rise.
- US final GDP q/q (Thu, 14:30 MT (12:30 GMT)) – Analysts expect the American GDP growth to reach 2.4%. If the actual number is higher, the USD will get positive momentum.
- Canadian GDP m/m (Fri, 14:30 MT (12:30 GMT)) – Last time the Canadian GDP growth declined by 0.1%. The projections for this week’s release will be published later. Higher-than-expected actual figures will boost the CAD.
- The Brexit tensions continue this week. After the huge protests in the UK during the weekend, the British prime minister started to lose the support amid the members of her own Cabinet. Today, the British lawmakers will vote on whether to come up with alternatives to the Brexit deal. The votes are expected to start at 00:00 MT time. If this motion is done successfully, lawmakers will take part in a series of indicative votes on Tuesday or Wednesday.
- The trade talks between the US and China will resume this week in Beijing on March 28-29. A breakthrough in the negotiations will bring support to the risk-weighted assets. Up to now, the sides have been optimistic on reaching a deal soon.
- Pay attention to the Boao forum which starts this Tuesday in China. The Chinese officials including Central Bank Governor Yi Gang and Finance Minister Liu Kun are going to speak at the conference. Their comments may affect the risk sentiment in the markets.
- Turkey will hold its local elections on March 31. After the sudden plunge of the Turkish lira on Friday, the officials started investigations into JPMorgan Chase & Co. and other banks. Turkish President Recep Tayyip Erdogan warned that bankers, which responsible for speculating against the currency would be punished.
The US dollar turned to the upside on Monday. Let's discuss what to expect next from the market.
Three main drivers of the market: the stimulus package, the US presidential election and the coronavirus. Let's look how market reacts.
The focus of traders’ attention shifted from Brexit and the US stimulus to the coronavirus . The WHO claimed that Europe become the new Covid-19 epicenter.
Canada will publish the monthly GDP growth on October 30 at 14:30 MT time.
The European Central Bank publishes the monetary policy statement alongside with an update on the interest rate on October 29, at 14:45 MT time.