We had another week of the USD rollercoaster. The USD index made yet another record weekly high of 88.36 however could not sustain itself at this level and tumbled down back to its weekly opening of 87.59 levels…
On Monday, EURO was on the stage as Spain's trouble child Catalonia was voting for its independence although the vote was considered to be illegal, but nonetheless it added extra uncertainty for EURO traders.
On Tuesday, major development was on JPY side early in the morning. Japanese September current account surplus unexpectedly rose however the JPY depreciated accross the board and the Japanese stocks appreciated to its 7 year high on post-news developments.
Wednesday was the pivotpoint of the week. The most important data came from the UK. The Bank of England dovish inflation report pushed the cable to its record lows.
Thursday, was remarkable. We had the US unemployement claims data and the JOLTS job opening data. Allthough both the data were relatively disappointing, one major reading was rateher positive for the USD, the US "quit rate" rise has been rising in September, and now the reading is back to its pre-crisis levels.
Furthermore, Iraq and its Autonomous oil-rich Kurdistan came to an ageement in oil exports which lead the black gold to appreciate back to $73/barrel levels. Although lower oil prices could be positive for ht econsumers, some of the investors beleive that it could add negative sentiment in global economy as the Oiil has direct impact on inflation levels.
On Friday, all eyes were on Eurozone for the German, French and Eurozone Q3 prelim GDP figures where the figures came better than expected. That being said, the EUR gained against almost all of its counterparts.
The upcoming week is expected to be full of volatility. In Europe the most market driving headlines are expected to be the ECB president Mario Draghi's speech, the German ZeW sentiment and the UK y/y CPI data. In the US FOMC meeting minutes and Unemployment claims data are expected to create the USD volatility.
Monday, November 17: The market is expected to be opening in Asia with the Japanese Q3 GDP numbers, forecasts indicating that the Japanese economy should be going into the positive territory. Also today we will have the New Zealand q/q retail sales announced during the Asian session.
EURO's volatility will be assured by the ECB president's speech later on during the European session where investors will be looking for clues on ECB's €1 balance sheet enlargement plan.
Tuesday, November 18: Australian's monetary policy meeting minutes will be announced during the Asian session where high volatility is expected on NZD and AUD pairs based on the rate decisions.
Later in the afternoon we will have the UK CPI data announced and following that there will be German ZEW economic sentiment announced which is one of the leading fundamental indicators for the Eurozone's economic health.
The USD volatility will be assured by the US PPI data.
Wednesday, November 19: Fundamentally it is going to be very busy on Wednesday. Japan's Abenomics will take the earlier part of the stage for the Japanese monetary policy statement which will be continued by the Bank of Japan's press conference.
Later on during the day the European session, Cable is expected to be quite volatile on a number of fundamental releases.
And the most important and super volatile event of the week is expected to be the FOMC meeting minutes
Thursday, November 20: Japan's economy will again be on the stage on Thursday with the release of October trade data. Any signs of positive export change will confirm once again that the BOJ is getting step by step closer to their target zones.
In Europe November PMI data for the primary Eurozone countries, German PPI data and the UK retail sales will assure the European session volatility.
Meanwhile during the US session, the US unemployment claims and the CPI data will be the major USD drivers.
Friday, November 21: EURO's main driver ECB president Mario Draghi is once again on stage on Friday at the 24th European Banking Congress "Reshaping Europe" in Frankfurt, it is expected that MR. Daghi will potentially talk about the central banker' pressure on ECB's QE planning.
Later on during the day US session we will have the Canadian Core CPI data announced; with rapidly dropping oil prices the CAD is rather vulnerable at the moment.
Authored by Orbex.com