A Week in the Market: Fed meeting and statistics (31 October – 4 November)
The start of November will give investors a better understanding of what's happening in the global financial system, and allow them to form their strategies for the near future.
USD: dependant on the Federal Reserve meeting
The key event of the week will be the US Federal Reserve System (Fed) meeting. It is very likely that the interest rate will rise to 4% per annum. But what next? The Fed's next steps will move the USD in one direction or the other.
JPY: devaluation just a matter of time
Japan will release a block of statistics on retail sales, consumer confidence and new home starts. In addition, the minutes of the previous Bank of Japan meeting will be presented. So far the JPY has been held back from a return to devaluation, but it is assumed that it is just a matter of time.
EUR: still no support
The Eurozone is preparing to release statistics on manufacturing activity for the region and individual countries. The unemployment rate for September will be published - no change is expected. ECB head Christine Lagarde will give a speech. There is much doubt that the EUR will find a foothold in the above events.
AUD: focus on China
Australia will release its retail sales, trade balance and manufacturing activity index for September. The RBA will release a monetary policy statement. However, more important for AUD will be news flow from China where restrictions are tightening again due to COVID-19 outbreaks.
GBP: politics and the new economy
The GBP has returned to a certain equilibrium. For how long? The UK will not be active on the macroeconomic calendar this week. However, policy formation and a new economic strategy will be reflected in the trajectory of the British currency.