A Week On The Market (11/11 - 11/17): Powell, Statistics, and Trump



This week on the market is unlikely to become too active: there is nothing serious or influential planned. The season of corporate reports is more than halfway through and gives a clear picture of what is going on; Central banks have made all the important decisions; interesting statistics are concentrated in the second half of the week. However, in these circumstances, we still have things worth paying attention to.

USD: Powell's speech may increase the volatility

USD: Powell's speech may increase the volatility

This week, the eurozone is publishing the second reading of the data on the GDP in the 3rd quarter. It is forecast that the economy has extended by the same 0.2% as in the first reading. If so, EUR/USD will not react to the statistics. However, this week, there are going to be many other events that make provoke the activity of the main currency pair. For example, there are two speeches of the Fed's head Jerom Powell planned in Congress. If his commentaries are devoted to the credit and monetary policy or the evaluation of the economy, the volatility of the dollar will grow.

Trump will speak on the trade and economy

Trump will speak on the trade and economy

On November 12th, in New York, there is going to be a session of the Economic Club; the speech of President Donald Trump is going to be devoted to the economy and trade. Bearing in mind how acute is the topic of the US and China's negotiations on the trade agreement, the investors are likely to listen to the speech very closely. In the case Trump's speech is verbally aggressive, EUR/USD may locally strengthen up.

BRICS: a meeting in Brazili

BRICS: a meeting in Brazili

November 13-14th, in Brazil, there is taking place a summit of BRICS, where the participants will discuss their relationship. China may give some unpleasant comments on the economic perspectives which might harm the currencies of the developing countries, including the USD/CNY.

IEA: excessive oil supply is bad for the prices

IEA: excessive oil supply is bad for the prices

This week, the annual report of the International Energy Agency on the global market is due. It is devoted to the perspectives of 2020. It is supposed that the next year the commodity market will feature an excessive supply of oil because there will be more of it produced, while the demand will remain weak. The world oil market was already characterized as well supplied. An additional indication of the excessive supply of oil may put pressure on the Brent quotations and send them to 60.50. However, such a decline is unlikely to take long.

Interest in the JPY may increase.

Interest in the JPY may increase.

While the USA and China are unable to come to an agreement, and the negotiations are promising to take long, the interest in such a safe asset as the JPY may come back. We may see hints on it right now. At the same time, the Japanese statistics that are going to be abundant this week have almost no influence on the JPY. USD/JPY pair may decline to 108.50 in this situation.

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