Breaking News
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Forex - Weekly Outlook: November 5 - 9

ForexNov 04, 2018 06:22
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

Investing.com - This week the U.S. mid-term elections and the Federal Reserve’s November meeting will be the main events in focus as markets continue to digest Friday’s strong U.S. employment report.

Voters on Tuesday will decide key races in Congress and state governments and the results could influence the Trump administrations ability to pass additional tax and trade reforms.

The Fed will begin its two day meeting on Wednesday, with markets anticipating no change to interest rates ahead of a widely expected rate hike in December.

Investors will also be watching Monday’s non-manufacturing PMI data from the Institute of Supply Management, as well as Thursday’s weekly jobless claims figures and Friday’s report on consumer sentiment.

Outside of the U.S. investors will get an update on the health of the UK economy on Friday, with the latest GDP data.

The dollar was broadly higher against a currency basket on Friday after data showing that U.S. job growth rebounded sharply last month and wage growth accelerated at the fastest pace in more than nine years.

The report indicated that the labor market is continuing to tighten, underlining the case for the Fed to hike interest rates again in December.

The dollar strengthened following the jobs report, with the U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies advancing 0.27% to 96.34. The index hit a 16-month high on Wednesday.

The dollar’s gains were held in check by lingering concerns over trade tensions between the U.S. and China.

The dollar gained ground against the euro and the yen, with EUR/USD slipping 0.17% to 1.1388 and USD/JPY adding on 0.43% to trade at 113.20.

The pound was also weaker against the dollar, with GBP/USD off 0.34% to 1.2968. Sterling still notched up a weekly gain of 1.09% after the Bank of England indicated Thursday that further interest rate hikes could be on the cards if Brexit goes smoothly.

Ahead of the coming week, Investing.com has compiled a list of significant events likely to affect the markets.

Monday, November 5

The UK is to release data on service sector activity.

Bank of Canada Governor Stephen Poloz is to speak at an event in London.

The ISM is to publish data on non-manufacturing activity.

Tuesday, November 6

The Reserve Bank of Australia is to announce its benchmark interest rate and publish a rate statement which outlines economic conditions and the factors affecting the monetary policy decision.

The U.S. mid-term elections will be held.

New Zealand is to release its latest employment report as well as data on inflation expectations.

Wednesday, November 7

The euro zone is to report retail sales figures, while Germany is to produce data on industrial production.

The Reserve Bank of New Zealand is to announce its latest monetary policy decision and hold a press conference.

Thursday, November 8

China is to release trade data.

The U.S. is to publish the weekly report on initial jobless claims.

Later in the day, the Fed is to announce its latest monetary policy decision and publish its rate statement.

Friday, November 9

The UK is to release data on GDP growth and manufacturing production.

The U.S. is to publish figures on producer price inflation and consumer sentiment.

Fed Governor Randal Quarles is to speak at an event in Washington.

Forex - Weekly Outlook: November 5 - 9
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email