Market Crash Incoming?
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
All attention to pound
The Bank of England will deliver monetary policy and rate reports on Thursday at 09:00 MT time.
Instruments to trade: EUR/GBP, GBP/USD, GBP/CAD, GBP/CHF
The Bank of England set the rate at a record low of 0.1% and the size of its bond-buying program at 745 billion pounds. UK officials claimed that the UK economic data were slightly better than expected in August. However, the outlook for the economy remains highly uncertain due to the rising coronavirus cases and Brexit developments. That’s why the BoE can still impose negative interest rates and expand its quantitative easing, which will push the pound down. Besides, the central bank claimed it won’t tighten monetary policy until the economy is stable, coronavirus is taken under control and inflation approaches the targeted 2%.
- If the bank gives optimistic guidelines, the GBP rises;
- If the bank has a pessimistic outlook, the GBP drops.
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The Last Volatile Week of 2022
The US Bureau of Labor Statistics will release its Consumer Price Index and many other critical events that will move the market this week!
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The RBA and the Bank of Canada will add volatility to the AUD and the CAD, while USD is expected to be boosted by the Non-farm payrolls.
