Key Economic Events and Reports for the Week Ahead
The Non-Farm Payrolls September report was a forceful reminder that the Fed will not rush to unwind QE and hike interest rates prematurely. Modest payrolls gain of 200K, almost twice lower than projected 500K, suggests that the Fed may postpone QE announcement till December and will think twice about whether to signal markets about possible rate hike next year via dot plot. Consequently, other currencies with low interest rates, EUR, GBP and JPY, get a chance for rebound against USD, which could be the key trading idea for FX for the next week.
Next Tuesday, investors will likely pay some attention to German economic sentiment index from the ZEW. An upside surprise will likely fuel concerns that inflation in the Eurozone may accelerate due to increased economic activity.
On Wednesday, investors are likely to focus on the minutes of the Fed meeting to clarify the Central Bank's plans to reduce asset purchases. A hint at the beginning of this process in November will most likely have a positive effect on the USD price.
On Thursday, attention should be paid to the report on claims for unemployment benefits in the US, the report on US oil inventories from the EIA and the report on unemployment in Australia.
Markets will analyse the US retail sales report on Friday. The broad indicator is expected to rise by 0.5%, but the strong data is likely to give strength to the dollar to resume the bullish trend.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.