The Week Ahead – The BoC and the ECB to Address Inflation in Monetary Policy Decisions…

On the Macro

It’s another busy week ahead on the economic calendar, with 56 stats in focus in the week ending 29^th October. In the week prior, 61 stats had been in focus.

For the Dollar:

Early in the week, consumer confidence figures for October will be key.

The focus will then shift to durable and core durable goods orders, due out on Wednesday.

On Thursday, 3^rd quarter GDP and jobless claims will also have plenty of influence ahead of a busy Friday.

At the end of the week, inflation, personal spending, Chicago PMI, and finalized consumer sentiment figures are due out.

Expect the inflation and personal spending numbers to be the main areas of focus.

The big question in the week will be whether the FED will need to deliver more than just tapering…

In the week ending 22^nd October, the U.S Dollar Index fell by 0.31% to 93.642.

For the EUR:

It’s a busier week on the economic data front.

Early in the week, German business sentiment figures for October will be in focus.

On Thursday, German unemployment and inflation will draw plenty of interest ahead of GDP numbers on Friday.

3^rd quarter GDP numbers for France, Germany, Spain, and the Eurozone are due out. Expect France, Germany, and the Eurozone’s GDP numbers to be key.

Prelim inflation figures for October will also be in focus on Friday in the wake of the ECB press conference. Transitory or sticky?

On the monetary policy front, the ECB is also in action on Thursday. The markets will be looking for a decision on tapering and forward guidance on the economy and interest rates.

For the week, the EUR rose by 0.36% to $1.1643.

For the Pound:

It’s a particularly quiet week ahead on the economic calendar.

There are no material stats due out of the UK to provide the Pound with direction.

While there are no stats, MPC member commentary and the Autumn Budget will draw plenty of interest…

The Pound ended the week up by 0.03% to $1.3755.

For the Loonie:

It’s a relatively busy week ahead on the economic calendar. At the end of the week, GDP and RMPI numbers will be in focus.

On the monetary policy front, the BoC monetary policy decision on Wednesday will be the main event, however.

The Loonie ended the week up 0.01% to C$1.2367 against the U.S Dollar.

Out of Asia

For the Aussie Dollar:

It’s busy week ahead.

On Wednesday and Friday inflation and wholesale inflation figures for the 3^rd quarter will be in focus.

At the end of the week, retail sales figures for September will also be key, however.

The Aussie Dollar ended the week up by 0.61% to $0.7466.

For the Kiwi Dollar:

It’s another quiet week ahead.

Trade data for September will be in focus on Wednesday.

Expect a pickup in exports to give the Kiwi Dollar a boost.

The Kiwi Dollar ended the week up by 1.27% to $0.7157.

For the Japanese Yen:

Retail sales figures will be in focus on Thursday, ahead of inflation and industrial production numbers on Friday.

Don’t expect too much influence on the Yen, however.

On the monetary policy front, the BoJ is in action on Thursday, though no surprises are expected.

The Japanese Yen rose by 0.63% to ¥113.50 against the U.S Dollar.

Out of China

It’s a quiet week ahead on the economic calendar.

There are no material stats due out to influence market risk sentiment in the week.

The Chinese Yuan ended the week up by 0.79% to CNY6.385 against the U.S Dollar.

Geo-Politics

Nothing new to consider in the week ahead, with China and Capitol Hill continuing to be the key area of focus.