NEWS / Foreign Exchange

Fed interest rate decision and Non-Farm Payrolls

Keep your eyes open for the Fed interest rate decision and the big Non-Farm Payrolls

Week Ahead Oct 29 to Nov 2

After G7 on Oct 22nd, we saw turmoil in the markets. EUR/USD crashed down 200 pips. Meanwhile , the US data did not give a hand to the USD. The USD is edging down again. Today ( 8 GMT Oct 26th ), the pair hit a reacord high at 1.4377. Will coming economic events during the Week (Oct 29th to Nov 2nd ) add further attack on the USD? What practical view will the Fed show us, cut the interest rate? If so, how much?

The week (Oct 29th to Nov 2nd ) has many significant events. On schedule we have the BoJ and the Fed announcing their interest rate decisions, the German PMI, the US ISM, and the big Nonfarm Payrolls (NFP) on Friday, which will generate extreme volatility for the USD against the other majors. We continue to pay extra attention to the 4 majors. Let's review them all.

On Monday (Oct 29th ) we have the following events to watch:

• In Japan, unemployment rate ( previous 3.8% ) is released at 23:00 GMT. Be aware USD/JPY traders.
• We do not have further significant events on Monday. But please pull your socks up as far as we have the extremely volatile markets.

On Tuesday (Oct 30th ) we have the following events to watch:

• In Germany, Unemployment rate (8.8% ) is a notable event to monitor.
• In the UK, CBI Distributive Traders Realized ( previous 15 ) is a remarkable event to watch.
• In the US, Consumer confidernce ( previous 99.8 ) is to be taken into account.

On Wednesday (Oct 31st ) we have the following events to watch:

• BoJ interest rate decision ( previous 0.50% ) and the Fed interest rate decision ( previous 4.75% ) are released in sequence. We should keep eyes open on how the Fed considers the depreciated USD.
• In the US, the GDP Annualized ( previous 3.8% ) is also scheduled at 12:30 GMT.
• In the UK, Consumer Confidence ( previous -7 ) is a notable event to follow.
• In New Zealand, Business Confidence ( previous -26.5 ) is scheduled at 2:00 GMT. Be aware NZD traders.

On Tursday (Nov 1st ) we have the following events to watch:

• In Australia, Retail Sales ( 0.7% ) and Trade Balance ( -1.6B ) are important events to monitor.
• In the Euro-Zone, German PMI ( previous 54.9 ) and the UK PMI (55.1 ) are notable events.
• In the US, ISM Manufacturing is one of the remarkable events to watch.

On Friday (Nov 2nd ) we have the biggest day of the week with the following events:

• In Switzerland, CPI ( previous 0.1% ) is scheduled at 6:45 GMT.
• In Canada, Unemployment rate ( 5.9% ) is released at 11:00 GMT. Be aware USD/CAD traders.
• In the US, the Unemployment Rate, Non-Farm Payrolls (NFP), the average hourly earnings and the average weekly earning are the events to watch, especially the "Non-Farm payrolls (NFP)", which is expected to have a big impact on the USD against the other majors.

All of the events are released at 12:30 GMT.