The Week Ahead: 31st October – 4th November 2022

Overview for the Week Ahead

Asian stock markets mostly rose Monday ahead of what is expected to be a Federal Reserve decision this week to raise interest rates again amid investor hopes the U.S. central bank will scale back plans for more increases.

The Fed is widely expected at this week’s meeting to announce another rate hike of 0.75 percentage points, three times its usual margin. Investors are looking for signs’ officials are satisfied that earlier increases imposed to cool inflation that is near a four-decade high are working and future increases can be smaller.

Monday’s Eurozone inflation report will be in the spotlight. The Eurozone is to release its flash inflation estimate for October on Monday which is expected to come in at a record high of 10.2%.

Last Thursday the European Central Bank delivered its second 75-basis-point rate hike in a row and subsequent remarks by policymakers indicated that it would continue tightening in the coming months in order to prevent inflation from becoming entrenched, despite fears over a looming recession.

The European energy crisis precipitated by Russia’s war in Ukraine has exacerbated the economic effects of already high inflation resulting in a slowdown in consumer spending.

In the UK, the BoE looks set to raise interest rates by 75 basis points on Thursday – its eighth straight rate increase in a row as it battles inflation currently running above 10% – even as the U.K. heads for a recession that could be exacerbated by spending cuts under new Prime Minister Rishi Sunak.

This Week’s High Impact Events

The times below are GMT+2.

Monday 31^st October

12.00 – Europe – CPI Flash Estimate y/y & Core CPI Flash Estimate y/y

Potential instruments to Trade: EUR Crosses.

Tuesday 1^st November

05.30 – Australia – Cash Rate & RBA Rate Statement

Potential instruments to Trade: AUD Crosses.

10.20 – Australia – RBA Gov Lowe Speaks

Potential instruments to Trade: AUD Crosses.

16.00 – US – ISM Manufacturing PMI & JOLTS Job Openings

Potential instruments to Trade: USD Crosses.

23.45 – New Zealand – Employment Change q/q & Unemployment Rate

Potential instruments to Trade: NZD Crosses.

Wednesday 2^nd November

00.00 – Australia – CPI q/q & Trimmed Mean CPI q/q

Potential instruments to Trade: AUD Crosses.

14.15 – US – ADP Non-Farm Employment Change

Potential instruments to Trade: USD Crosses.

20.00 – US – FOMC Statement & Federal Funds Rate

Potential instruments to Trade: USD Crosses.

20.30 – US – FOMC Press Conference

Potential instruments to Trade: USD Crosses.

22.00 – New Zealand – RBNZ Gov Orr Speaks

Potential instruments to Trade: USD Crosses.

Thursday 3^rd November

09.30 – Switzerland – CPI m/m

Potential instruments to Trade: CHF Crosses.

10.05 – Europe – ECB President Lagarde Speaks

Potential instruments to Trade: EUR Crosses.

14.00 – UK – BOE Monetary Policy Report, MPC Official Bank Rate Votes, Monetary Policy Summary, Official Bank Rate

Potential instruments to Trade: GBP Crosses.

14.30 – UK – BOE Gov Bailey Speaks

Potential instruments to Trade: GBP Crosses.

14.30 – US – Unemployment Claims

Potential instruments to Trade: USD Crosses.

16.00 – US – ISM Services PMI

Potential instruments to Trade: USD Crosses.

Friday 4^th November

02.30 – Australia – RBA Monetary Policy Statement

Potential instruments to Trade: RBA Crosses.

11.30 – Europe – ECB President Lagarde Speaks

Potential instruments to Trade: EUR Crosses.

14.30 – Canada – Employment Change & Unemployment Rate

Potential instruments to Trade: CAD Crosses.

14.30 – US – Average Hourly Earnings m/m, Non-Farm Employment Change, & Unemployment Rate

Potential instruments to Trade: USD Crosses.

16.00 – Canada – Ivey PMI

Potential instruments to Trade: CAD Crosses.

16.00 – US – FOMC Member Collins Speaks

Potential instruments to Trade: USD Crosses.

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