An Inside Look on Market Expectations for the Upcoming Week

An Inside Look on Market Expectations for the Upcoming Week

The week will undoubtedly be memorable for all trades. Let’s take a quick look at the expectations for the week.

Politics and Others
Making news will be the ongoing accusation saga in the White House that will be made public. Its impact has not yet been felt in the market, but it can be felt in the coming weeks.

On Friday, the U.S. announced its unwillingness to eliminate certain tariffs. With the uncertainty of a tariff reversal before the preliminary agreement, it seems that China is still unsure and, therefore, needs guarantees before signing the agreement.

Powell’s defense at Congress during the week, the long-awaited speech by the President of the United States at the Economic Club in New York will be in the news this week.

UK politics may also come into play given the upcoming elections, also the recent monetary stance of the Bank of England due to Brexit.

RBNZ can keep its rates stable as expected, while conversations for rate cuts can continue, the positivity hovers around the Kiwi dollar as there is a 50 percent chance of a 25 basis point rate cut.

Main Currencies
U.S. Dollar, the Canadian Dollar
The previous week had been positive for the dollar, as it closed at $98,353 with a market gain of 1.15%. Investors may need to relax until Wednesday to obtain statistics that influence the U.S. market since it is assumed that by then the inflation figures for October will be out.

While the impact on the USD is uncertain, it can remain stable to inflation and unemployment claims figures, but retail sales figures can deal a blow to the USD. Canadian dollar can also be affected by the expected speech of the BoC governor.

The dollar can recover, but events can take a turn.

The Canadian dollar closed at C $1.3228 at 0.65% per USD.

Euro, the Japanese Yen
The economic sentiment figures for Germany and the Eurozone will be published on Tuesday, which could face a negative blow to the EUR given the rise in unemployment in Germany and a drop in the ZEW economic sentiment index.

Industrial production figures and GDP figures on Wednesday and Thursday respectively can cause a change of trend for the EUR. The GDP figures that will be published as first and second estimates, while the final figures will come out on Friday can be shocking for the Japanese yen. Besides, the recent monetary stance of the BoJ comes into play.

The EUR and the Japanese yen can recover if the economy according to published figures improves and if inflation figures are low.

The previous week, the EURUSD closed at $1.1018 at 1.33% and the Japanese Yen at 0.99% at ¥109.26/USD.

The Cable, the Australian Dollar
Manufacturing figures for the third quarter of GDP and for September will impact, while commercial inventories and industrial production may have less impact on the cable.

Employment figures, October inflation, and retail sales figures to be published on Tuesday, Wednesday and Thursday will affect the cable, also the Australian dollar. GBPUSD closed at $1.2774 for 1.33%. The Australian dollar ended the week with a 0.59% drop to $0.6863.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.