US economy heavily in focus during the upcoming trading week
During the upcoming trading week traders and investors look to a key interest rate decision from the FOMC and the release of the US monthly jobs report. The United States economy also releases a slew of high-impacting macroeconomic data points during the course of the week, including Manufacturing, Consumer Confidence, Inflation, Home Sales, Unemployment and Wage Earnings data.
The Bank of Canada also makes a key interest rate decision this week, with most economists expecting the central bank to keep interest rates on hold. The Australian economy also releases important quarterly CPI Inflation data, which could decide the direction of interest rates next month. The UK and Chinese economies also release key monthly PMI Manufacturing readings.
Monday 28th October, Tokyo CPI Index
The Tokyo Consumer Price Index is released by the Japanese Statistics Bureau and is a measure of price movements. Tokyo CPI is obtained by the comparison of the retail prices of a representative shopping basket of goods and services, excluding fresh food. Traders pay attention to Tokyo CPI as the purchasing power of the Japanese yen currency could be decreased by rising inflation.
- The USDJPY pair is only bearish while trading below the 108.60 level, key support is found at the 107.90 and 107.45 levels.
- If the USDJPY pair trades above the 108.60 level, buyers may test towards the 109.00 and 109.30 resistance levels.
Tuesday 29th October, US Consumer Confidence
US Consumer Confidence is released by the Conference Board measures the level of consumer confidence in economic activity. Consumer Confidence is a key barometer of the overall health of the United States economy from the perspective of the consumer. The Consumer Confidence monthly headline reading has a volatile tendency and weak connection to household expenditure.
- The AUDUSD pair is only bearish while trading below the 0.6810 level, key technical support is found at the 0.6760 and 0.6680 levels.
- If the AUDUSD pair trades above the 0.6810 level, buyers will likely test towards the 0.6880 and 0.6930 levels.
Wednesday 30th October, FOMC Rate Interest Decision
The Federal Open Market Committee meets eight times per year to decide on United States monetary policy and where to set the nations interest rate. Rate changes impact interest rates for US consumer loans, bonds, mortgages and the US dollar exchange rate. The decision of the FOMC policy statement is usually very important, maybe more important than the actual interest rate move made by the central bank, due to it being highly anticipated by market participants. The policy statement includes hints for the future and contains the central bank’s collective outlook on the economy
- The USDCHF pair is only bullish while trading above the 0.9910 level, further gains towards 0.9950 and 0.9990 levels remain likely.
- If the USDCHF pair trades below the 0.9910 level, sellers may test towards the 0.9840 and 0.9780 support levels.
Thursday 31st October, US Core PCE
The US Core PCE Index report is greatly valued mainly due to its capability of forecasting inflationary pressures inside the American economy. The Federal Reserve utilizes a measure of inflation resulting from the PCE as their primary gauge of inflation. An overall increase in prices may be derived from an excess take in of these high levels of production and consumption.
- The GBPUSD pair is only bearish while trading below the 1.2850 level, key support is found at the 1.2770 and 1.2710 levels.
- If the GBPUSD pair holds above the 1.2850 level, buyers may test the 1.2950 and 1.3000 resistance levels.
Friday 1st November, US Nonfarm Payrolls Job Report
The NFP job report shows the monthly change in employment in the American economy, excluding the farming sector. The Non-farm payrolls job report is the most carefully observed indicator in the employment situation inside the United States. It is considered the most inclusive calculation of job creation, which causes the Nonfarm Payrolls Job report to become highly significant to market participants, due to the great importance of labour in the United States economy.
- The EURUSD pair is only bearish while trading below the 1.1110 level, further losses towards the 1.1040 and 1.1000 levels remains possible.
- If the EURUSD pair holds above the 1.1110 level, buyers are likely to test towards the 1.1180 and 1.1255 resistance levels.