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Forex - Weekly Outlook: Oct. 29 - Nov. 2

Published 10/28/2018, 09:06 AM
Updated 10/28/2018, 09:06 AM
© Reuters. U.S. dollar pulls back from 2-month high - This week, investors will be looking ahead to Friday’s U.S. jobs data for October, which is expected to show that hiring picked up after disruption from Hurricane Florence led to an unexpected slowdown in the previous month.

The data will be closely watched for indications on the health of the U.S. economy at a time when concerns over rising interest rates are spooking investors.

Central bank meetings in the UK and Japan will also be in focus, with no changes expected.

Meantime, the euro zone will release flash euro zone inflation and third-quarter growth figures, which are likely to lend support to the European Centrals Bank's decision not to rush stimulus withdrawal.

The U.S. dollar ended lower on Friday, falling from the two-month high hit earlier in the day after news of stronger-than-expected third-quarter gross domestic product.

The U.S. economy grew at a 3.5% annualized rate, the Commerce Department said, beating expectations of 3.3% but underperforming the previous quarter’s 4.2% growth.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, ended 0.3% lower at 96.16. It rose to 96.62 earlier, a level not seen since Aug. 16.

For the week, the index enjoyed a 0.7% gain, its best in four weeks.

The euro, meanwhile, nudged up 0.25% to 1.1402 (EUR/USD) on Friday.

It hit a two-month low of 1.1353 the previous session, following European Central Bank President Mario Draghi's failure to convince traders the ECB could pursue monetary tightening after next summer as political and economic uncertainties grow in the monetary union.

Ahead of the coming week, has compiled a list of significant events likely to affect the markets.

Monday, October 29

The UK is to release data on net lending.

The U.S. is to report on personal spending and the core PCE price index.

Tuesday, October 30

Australia is to release data on building approvals.

The euro zone is to publish preliminary data GDP.

Germany is to release data on consumer price inflation.

The U.S. is to release data on consumer confidence.

Wednesday, October 31

Australia is to publish data on consumer price inflation.

China is to release reports on manufacturing and service sector activity.

The Bank of Japan is to announce its benchmark interest rate and publish what will be a closely watched rate statement. The announcement is to be followed by a press conference.

The euro zone is to release preliminary data on consumer price inflation.

The U.S. is to publish the ADP nonfarm payrolls report.

Canada is to release data on GDP.

Thursday, November 1

The UK is to release data on manufacturing activity.

The Bank of England is to announce its latest monetary policy decision and Governor Mark Carney is to hold a press conference.

In the U.S., the Institute of Supply Management is to publish its manufacturing index.

Friday, November 2

New Zealand is to release data on business confidence.

Australia is to report on retail sales.

The UK is to produce data on construction activity.

Canada is to release its latest employment report along with data on trade.

The U.S. is to round up the week with the nonfarm payrolls report for October.

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