The next 5 days of trading will likely see some big moves across foreign exchange markets as both economic data and central bank announcements offer fresh perspectives.
3 major central bank announcements will take place this week with the Fed and Bank of England both expected to increase rates by 75 basis points. Each of these announcements is important but the BoE event will take on extra significance given the political changes and instability within the UK at present. The Reserve Bank of Australia is also set to provide a monetary policy update. They are forecast to hike rates by 25 basis points.
On the data front, US non-farm payrolls will lead the way. Expectations are for another 200,000 jobs to have been added in September. Should this be accurate then it will place more pressure on the Fed to hike as the labour market remains very strong.
Buckle up – it should be an exciting week.
Written by Viv Savani. 6:38am, October 31st 2022
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