The United States will release the weekly Unemployment Claims on October 21, at 15:30 MT time (GMT+3).
Key Market Driver: FOMC Statement
What will happen?
The FOMC, a committee within the Federal Reserve, will hold an important meeting and press conference on September 22 at 21:00 MT time (GMT+3). FOMC’s comments will hugely affect the US dollar and thus all the pairs with the USD and US indices such as S&P 500 (US500), Nasdaq (US100), etc. This committee will discuss what time to start reducing bond buys and hiking interest rates.
Why is it important?
All the market participants are waiting eagerly for this moment as it will bring volatility to the markets. However, most analysts don’t expect any hawkish moves from the Fed this time as the US Inflation Rate came out lower than expected and it can ease pressure on the Fed.
Last time, the Federal Reserve was dovish. Therefore, the USD weakened and EUR/USD surged by 300 points only in 1 hour! After that, EUR/USD continued rising further as the Fed meeting has a long-term effect on the markets.
How to trade on the FOMC Statement?
- If the FOMC hints at tapering sooner than expected, the USD will rise.
- Otherwise, fall.
Instruments to trade: EUR/USD, GBP/USD, XAU/USD, US500.
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).