The market sentiment is mixed, but there are still interesting movements on the market.
5 things you need to know this week
US CB Consumer confidence (Tue, 17:00 MT time) – as you may know, this indicator shows the level of consumer spending. That means you will spend more if you confident in economic conditions. Analysts expect it to drop to 136.3 points from reaching 138.4 points in September. Remember, the higher-than-expected level is good for the greenback.
The Bank of Japan press conference (Wed, tentative) – some experts anticipate the probable changes to the monetary policy of the BOJ, following the latest statements from its Governor Haruhiko Kuroda. A combination of the hawkish statements from the Bank of Japan and a sell-off in the equity markets can be quite supportive for the JPY.
Canadian GDP m/m (Wed, 15:30 MT time) – this is a nice opportunity to trade the loonie during this week, too. Last time the economic activity of the country increased by 0.2%. There is no official forecast yet, but it will definitely be announced before the release of the actual data. We will keep you updated.
Monetary policy summary from the Bank of England (Thu, 15:00 MT time) – while there are no expectations of the rate hike, the bank can make some supportive comments for the GBP. It will help the currency to recover during the uncertain Brexit times.
US non-farm employment change and employment rate (Fri, 15:30 MT time) – the NFP is forecast to expand to 191 thousand people from 134 thousand in September. At the same time, the unemployment rate will reach 3.8%, according to analysts. This level is higher than in September (3.7%), which can have a negative impact on the currency. We will see how the actual data will affect the USD.
- During the Brazil elections, Jair Bolsonaro from Social Liberal Party is proclaimed as a new president-elect. His victory speech contained his goals to reduce the size of the state and the public deficit and to cut bureaucracy and regulations.
- French finance minister Bruno Le Maire told the press he did not see any risks of contagion from Italy’s budget crisis in the European Union (EU).
- China is planning to impose the anti-dumping tax on the chemicals from the US, Saudi Arabia, Malaysia, and Thailand.
- UK's Exchequer Phillip Hammond will deliver his speech today at 18:30 MT time. During his latest interview, he told the country need to find a new tax and spending plan. He also suggested extending the supportive measures if the solution on Brexit problem is not reached soon.
Have a successful week of trading!
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.