It almost seems like every week is a big week lately. This one is no different. Looking at the economic calendar below and only highlighting the high impact announcements, we see a lot of red.
Chart is set at GMT + 10 West Pacific Standard time
Starting the week off we China, Great Britain and the United States lead the way. China reporting their rates decision however they have come in as expected with the People’s Bank of China leaving rates unchanged. Later in European trading day Britain’s Treasury Committee will report on the expenditure, administration and policy of HM Treasury, Revenue and Customs in their inflation reporting hearing.
In the US we will hear from Fed Chair, Jerome Powell, as he talks about the economy, his 1st of 3 speeches that he will hold this week. With recent rallies in the dollar we will be listening out for any hidden gems in Powell’s speech that can indicate a change in momentum or confirmation of a recovery in the greenback. Back to Britain, we here from the Bank of England’s Governor Andrew Bailey. Very much like Powell we wait and see what he has to say about the state of the economy.
Wednesday is a lot more exciting with Australian Retail Sales MoM for August, RBNZ Interest Rate Decision, EUR Markit PMI numbers and Britain’s PMI numbers for September. Expect a volatile trading day especially for these currencies.
Powell is up again. This time the Federal Reserve Chair testifies before congress. He will give an in-depth overview of the economy and monetary policy. The Bank of Japan will release it’s monetary Policy Meeting Minutes. In the meeting they will review the economic developments inside and outside of Japan and indicate sign of new fiscal policy. Look out for some volatility in the currency as this report can play heavily of the JPY. With the currently run the Yen has had against the dollar all signs do point to a hawkish outlook and a continued bullish run for the Yen.
Continuing with strong data releases, we the Swiss National Bank release its interest rate decision. expectation are to leave them as they are at -0.75%. They will also assess the Monetary Policy. This policy will contain the outcome of their decision on interest rates, commentary on the economic decisions that influenced their decision and above all their projection for the economy which can give us an indication of future rate decisions.
We Finish the week of back in Britain and the US. Firstly Powell will address congress for the last time this week. Eyes and ears glued to his every word as this will be the last time we hear from him in such and open forum. Powell is followed by the the Treasury Sec Steven Mnuchin. Mr Mnuchin is responsible for the executive branch agency whose mission is to maintain a strong economy. He is also responsible for creating job opportunities.
The Bank of England’s Governor Bailey talks for the second time this week. Can he leave any optimism behind? Brexit was the talk of the week last week. Let’s see if there is anything to hint deal on is back on the table.
We finish off with the US as they release the Durable Goods Orders for August and Non-defense Capital Goods Orders ex Aircraft for August. Durable Goods Orders measure the costs of orders received by manufacturers for durable goods, which means goods planned to last for three years or more, such as motor vehicles and appliances. As these products often involve large investments they are sensitive to the US economic situation. Non-defense Capital Goods Orders Excluding Aircrafts, measures the cost of orders received by manufacturers for capital goods, which means goods planned to last 3 or more years excluding defense and aircraft sector.
And that’s the week folks. Stay tuned for currency updates and any other news worth mentioning. Have a great week and remember to trade Smarter Not Harder.
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