⚡Crypto Alert : Altcoins are up 28% in just last month! Unlock gains and start trading now - Click Here

Governor of the Bank of England Mark Carney Speaks

Weekly Outlook, Nov 4-Nov 8: Top Economic Events to Watch This Week

Posted Sunday, November 3, 2019 by
Arslan Butt • 3 min read

The previous week has been one of the busiest as the market traded the Federal Reserve rate cut decision along with the better than expected labor market figures. The US dollar surged on Friday following data which revealed that US employment growth stalled less than anticipated in October, while wages and hiring increased in the previous two months.
The Nonfarm payrolls rose by 128,000 positions last month, whereas average hourly earnings grew 0.2% after being stable in September. The US dollar index versus the basket of six major currencies soared as high as 97.45, up from 97.27 ere the data, before returning to 97.30, up 0.02% on Friday. The greenback has declined since Wednesday when the Federal Reserve lowered interest rates for the third time this year and intimated that further declines might not be expected.
This week, most of the focus stays on Bank of England’s monetary policy meeting, labor market figures from New Zealand, and the Canadian economy. Besides, the BOE inflation report also remains in the highlights.

Top Economic Events to Watch

Monday – November 4

AUD – Retail Sales m/m – 0:30 GMT
The Australian Bureau of Statistics will be releasing the figures for the previous month. It’s the primary gauge of consumer spending, which accounts for the majority of overall economic activity.
Lately, the figure has been outstanding, showing a surge of 0.4% during the previous month vs. 0.0% figures. This month, economists are expecting a neutral figure of 0.4%, which may not drive sharp price action in the market.

Tuesday – November 5

AUD – RBA Monetary Policy Decision – 3:30 GMT
The Reserve Bank of Australia will be eyed for the interest rate decision. At the moment, the current cash rate is 0.75%, and there is a slight possibility of it being lowered.
The labor market continued to be flexible, and there are some preparatory indications that the housing market has started responding positively to the lower interest rate settings. For now, the RBA is expected to keep the interest rate on hold at 0.75%. Aussie may trade stronger on the news.
USD – ISM Non-Manufacturing PMI – 15:00 GMT
The Institute for Supply Management is due to release services PMI figures at 15:00 GMT with a forecast of 53.5 vs. 52.6. Newbies, it’s a survey of about 400 purchasing managers, which asks respondents to rate the relative level of business conditions, including employment, production, new orders, prices, supplier deliveries, and inventories. The negative forecast may keep the US dollar in check.
NZD – Labor Market Figures – 21:45 GMT
The Statistics New Zealand is due to report Employment Change and Unemployment rate data at 21:45 GMT. Typically, New Zealand’s employment figures are pretty fragile, as they show massive deviations every month.
Employment Change q/q – It’s forecast to drop from 0.8% to 0.2% this month.
Unemployment Rate – The unemployment data is also expected to rise from 3.9% to 4.1%.
Indeed, both figures are showing slacks in New Zealand’s labor market, which may force the Reserve Bank of New Zealand to keep the interest rates unchanged or dovish.

Thursday – November 7

GBP – Monetary Policy Decision
With the Brexit can having been hammered down the street and an election asked for December 12, a shift in strategy is very high. Sterling has soared by 7% since mid-August in the wake of trade-weighed sentiments.
Both the Federal Reserve and the European Central Bank have already diminished rates, and now all eyes stay on the ECB. Businesses, investors, and officials have had a couple of fire-drill like approaches to Brexit.

After the traders absorbed the FOMC announcement and Powell’s press conference, its view of a December rate hike was inherently stable as shown in the Fed funds futures.
The BOE is highly anticipated to keep the interest rates on hold at 0.75% vs. 0.75% beforehand. While the MPC official bank voting also remains steady at 0-0-9. Sterling may remain supported over the release of the news.

Friday – November 8

CAD – Labor Market Report – 13:30 GMT
Employment Change – It’s always exciting to trade events like Canadian employment change as it’s highly unpredictable, and the market often exhibits massive fluctuations in its release. Especially if the data reports a sudden rise or drops in the employment change. Employment Change is due to release at 13:30 GMT. Last month’s figure was 53.7; let’s see what the Canadian labor market has to share this month.
Unemployment Rate – Canadian labor market figures seem to get worse over a dramatic drop in crude oil prices. Economists are expecting a rise in the unemployment rate from 5.5% to 5.6% for the month of November 2019.
That’s it for now, stay tuned to FX Leaders for quick trade plans and forex trading signals.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments