The United States will release the weekly Unemployment Claims on October 21, at 15:30 MT time (GMT+3).
Important events this week will bring us
Australia will publish its inflation figures on Wednesday at 2:30 MT time. According to the forecasts, the headline CPI will advance by 0.6%. This indicator will be closely watched by the Bank of Australia, which is considering the rate cut due to unfavorable economic conditions. Higher figures will reduce the chances of a cut and, therefore, will push the Australian dollar up.
The Fed: the current stance is appropriate
The Federal Reserve is going to have a meeting on Wednesday, January 29 at 21:00 MT time. While the market euphoria surrounding the US-China phase one trade deal shrug off the possibility of a rate cut during the upcoming meeting, it would be interesting to hear the comments by the Fed Chair Jerome Powell on the further plans including the changes to the interest rate and the path of the quantitative easing program. If Mr. Powell provides an optimistic outlook, the USD will be supported.
Will the BOE keep its tone?
The next important event this week will be the meeting of the Bank of England on January 30 at 14:00 MT time. The reduction of the Brexit uncertainties doesn’t mean the end of them, as a result, some of the analysts suggest the regulator is going to cut the current 0.75% rate. From their point of view, we may see the weaker figures of the business confidence based on the complicated future reality of the UK-EU trade relationship. Nevertheless, we recommend paying attention to the tone of the statements and the votes of the bank’s members. If more of them vote for a cut, we may expect the GBP weakness.
The Fed is ready to start tapering in November. Since the markets were expecting this and it wasn’t a surprise, the USD slumped allowing risk-on currencies and gold to rally up.
US Retail Sales will be out on October 15 at 15:30 MetaTrader time (GMT+3).
Last week was full of surprises! Stock indices have shown significant growth…
The US dollar is heading to close the seventh day in the red as it remains under selling pressure. The US data at 15:30 GMT+3 (jobless claims and Philly Fed Manufacturing Index) may support the greenback if it's strong.
Canada will publish the Retail Sales and Core Retail Sales on October 22, at 15:30 MT time (GMT+3).