The upcoming week is filled with important events that could impact the forex market. Let’s take a closer look at what to expect:
Monday:
Key Fed governor Christopher Waller’s comments on potential rate cuts based on labour market and inflation data will be closely watched. Any indication of a change in Fed policy could affect market sentiment.
Tuesday:
The UK Labour Market report is expected to show a slight decrease in job additions and stable unemployment rate. The market is pricing in a rate cut by the end of the year, with a higher chance in November.
The Canadian CPI data will also be important, as it could influence the Bank of Canada’s decision on interest rates. Expectations for a 50 bps cut have fluctuated based on recent economic reports.
The New Zealand Q3 CPI is anticipated to show a decrease, leading to expectations of further rate cuts by the Reserve Bank of New Zealand.
Wednesday:
The UK CPI data is expected to show a slight decline, which could impact market expectations for future rate cuts.
Thursday:
The Australian Labour Market report and ECB Policy Decision will be key events to watch. The RBA is expected to maintain its hawkish stance, while the ECB is likely to cut interest rates.
US economic indicators such as Jobless Claims and Retail Sales will also provide insights into the state of the economy.
Friday:
Japanese Core CPI data is expected to drop, indicating potential economic challenges. The Bank of Japan’s stance on interest rates will be important to watch.
Overall, the forex market is likely to see volatility based on the outcomes of these events. Traders should stay informed and be prepared for potential market movements.
