Weekly Preview – Key Central Bankers to Rule the Market
Arslan Butt • 2 min read
What’s up traders. We just concluded another profitable week and now anxiously waiting for the next week. In order to get set, I was looking at the fundamental side of the market. The economic calendar seems really busy and it's likely to give us sound opportunities to trade. Let's take a look at them now.
Key Central Banks Meeting Minutes
This week carries importance as three of the central bankers are expected to release the Monetary Policy Meeting Minutes. Don't worry if this is something new for you. Let's understand it really quick. The monetary policy meeting minutes is a detailed record of the Central Bank's (RBA, ECB, FED etc.) most recent meeting, providing in-depth insights into the economic conditions that influenced their decision on where to set interest rates. Thereby, it carries much value to determine the future trends of the market.
RBA Monetary Policy Meeting Minutes
On Nov. 21 (Tuesday), the Reserve Bank of Australia will be releasing the Monetary Policy Meeting Minutes at 0:30 (GMT). The main focus is likely to be it's Nov. 7 policy meeting. Looking at the previous economic figures, the Australian Dollar has weakened a lot against the USD.
Potential Impact: The Australian dollar is less likely to find support over the monetary policy minutes. However, the only hope is the RBA Gov. Lowe Speaks on the same day at 9:30 (GMT) as his less dovish remarks can boost the demand for AUD.
FOMC Meeting Minutes
On Nov. 22 (Wednesday), the Federal Open Market Committee is expected to release the Nov. 1 policy meeting. The Fed is highly expected to hike the Fed Fund Rate in its December meeting.
Potential Impact: The USD is likely to stay supported on the release unless the FOMC surprises the market with dovish remarks. At the moment, the interest rate sentiment is prevailing the market and keeping the dollar on the top. Most of the rate hike sentiment is already "priced in" therefore, the change in Fed's tone will cause some serious turbulence in the USD.
ECB Monetary Policy Meeting Accounts
A day after FOMC, the investor's focus will switch to ECB Monetary Policy Meeting Accounts which are scheduled to be released on Nov. 23 (Thursday) at 12:30.
Potential Impact: Recalling the remarks of ECB President's Mario Draghi after the meeting that the Bank's choice to continue the asset purchase program open-ended wasn't unanimous. Therefore, any indication of tapering the APP (asset purchase program) will boost the demand for single currency euro, driving the Euro even higher.
It was all about the central bank's policy meeting minutes and their potential impact on the market. In my next update, I'm going to talk about key trade setup for the next week. Keep following to stay one step ahead of others. Good luck!