FX Week Ahead – Top 5 Events: BOE, Fed, RBA, Rate Decisions; Canada Jobs Report; US NFP
The first week of November is all about central banks.
The first week of November is all about central banks.
Gold and silver prices fell on Friday, spoiling early-week gains. Gold is eyeing a breakout above resistance from a Double Bottom pattern. Silver failed to clear a key SMA as RSI fell below 50.
Recent rate hikes have been positive for USD but not for the pound. Strong US fundamentals also point to lower GBP/USD ahead of more possible US job additions (NFP)
Dax and FTSE have had a good run this week despite higher rates and political uncertainty that continues to rattle markets.
Higher US Treasury yields have coincided with declines by US stock markets.
September U.S. Core PCE rises to 5.1% y-o-y, one-tenth of a percent below expectations, a sign that inflationary pressures remain elevated but are growing less aggressively than in previous months.
PCE data is likely to guide the Fed’s tone next week as the rate setting committee is expected to hike by another 75 bps. Potential hawkish message threatens GBP/USD
The Bank of Japan today left all monetary policy settings untouched and said that they don’t plan to raise interest rates any time soon.
EUR/USD gained support after positive German GDP data while markets turn their attention over to German and U.S. inflation.
We have closed out a volatile session stirred by FAANG earnings, a BOC rate hike surprise and growing fear over a recession. Looking ahead, we will hit upon similar themes but via more systemically important events.