mask Week Ahead | BoJ, Fed and BoE to meet, Non-Farm Payroll in Focus

29/ 10/ 2017

Week Ahead | BoJ, Fed and BoE to meet, Non-Farm Payroll in Focus

30th October 2017 - 3rd November 2017

Monday

  • EUR Retail Sales, Industrial Confidence, Economic Sentiment Indicator, Business Climate, Consumer Confidence, Services Sentiment, Consumer Price Index
  • USD Core Personal Consumption

This week is looking a busier week from the Monday onward, since there are some major reports coming from different zone, Germany will be releasing its retail sales report MoM and YoY for the month of Sep. 2017, last week has been good for US dollar, investor is expecting more good from this week as well and US will be releasing its core personal consumption expenditure – Price Index MoM and YoY for the month of Sep. 2017 with Fed new Chair Person decision along with interest rate hike.

Tuesday

  • BOJ Interest Rate Decision, Outlook Report, Monetary Policy, Press Conference
  • CAD Gross Domestic Product
  • EUR Unemployment, Consumer Price Index, Gross Domestic Product

On Tuesday, we will look at Interest Rate Decision from BOJ along with releasing of monetary policy statement report while holding BOJ press conference, which surely move Japanese market and globally. Middle of the Day Eurozone will be releasing its GDP, unemployment rate and CPI report, there could be seen some movement in Euro market. Since last in while holding press conference ECB president Mario Draghi did not say something could boost eur.

Wednesday

  • USD ADP Employment Change, ISM Manufacturing PMI, FED’s Monetary Policy, Interest Rate Decision

On Wednesday, US ADP Employment Change will be published it is a measure of the change in the number of employed people in the US. Generally speaking, a rise in this indicator has positive implications for consumer spending, stimulating economic growth followed by ISM Manufacturing PMI Manufacturing Index that shows business conditions in the US manufacturing sector It is a significant indicator of the overall economic condition in US. This will be highlighted by Monetary Policy and Interest Rate Decision The focus is on the December meeting when the Fed is likely to deliver its third and last rate hike for the year. So far, Yellen and her colleagues are not deterred by lower inflation and intend to proceed as usual. This November meeting provides them with an opportunity to give a hint if they may change their minds. Any expressions of concern about inflation could send the dollar lower, while confidence could send it higher.

Thursday

  • EUR Unemployment Rate, Markit Manufacturing
  • BOE Interest Rate Decision, Monetary Policy, Quarterly Inflation, MPC Vote Hike, Minutes, Gov Carney Speech
  • USD Jobless Claims

On Thursday, focus will be on The Bank of England as they will probably raise the interest rate from 0.25% to 0.50%, reversing the post-Brexit hike of August 2016. In the previous meeting and in consequent speeches, the Bank of England gave heavy hints that they are going to raise the rates due to higher inflation (reached 3% y/y) and also on worries about rapidly expanding credit. However, one-member cast doubt about the timing of the hike while Governor Carney seemed unenthusiastic about further hikes. In case the BOE surprises with a no-change, the pound will crash, but the chances are low. In case they hike but hint it is only a one-off, the pound will likely wobble but no go anywhere fast. In case it is the beginning of a tightening cycle, the pound will leap. This is a “Super Thursday” meeting, that also consists of the Quarterly Inflation Report in addition to the rate decision and the meeting minutes. The QIR consists of inflation forecasts that could provide some prospects about the next moves while the meeting minutes could show if there were dissenters against the decision. The event will surely trigger high volatility.

Friday

  • USD Non-Farm Payrolls, Labor Force Participation Rate, Unemployment, ISM Non-Manufacturing, Markit Services PMI
  • CAD Unemployment Rate

On Friday, The “king of forex indicators” will likely show a rebound in jobs after the extraordinary report for September. Since Investors, traders are already expecting much more from US and Trump this week, so once again Friday is going to be busiest day of the week for dollar, because US will be releasing its few of major reports on this global weekend, like NonFarm payrolls, labor force participation rate along with Unemployment rate, middle of the weekend BOC will be releasing its Unemployment rate and Net Change in Employment for the month of Oct. 2017 and then in the second half US will be leasing its Markit PMI composite and Markit service PMI for the month of October 2017, so what we can see this week is huge volatility is going to be there in FX market looking at economic Calendar.