Forex News Trading Strategy for the 24th – 28th of October
This week begins with a slew of PMI data from the Euro Zone, giving us an idea of how the manufacturing and services sectors fared in October. Due up Wednesday is the Australian CPI print, followed by first estimates of third quarter growth from the UK and US on Thursday and Friday.
First estimate manufacturing and services PMI prints from France, Germany, and the Euro Zone highlight an otherwise slow Monday in terms of scheduled data releases. We will also hear from Fed members Dudley and Bullard during the NY session. With the market heavily focused on the potential of upcoming Fed actions, participants will be paying close attention to member’s comments.
Tuesday bring the latest German Ifo Business Survey which bested expectations in September painting a generally much more optimistic picture than was anticipated. During New York we will see the Conference Board’s US Consumer Confidence print that has been showing considerable strength, gaining almost 7 ½ points over the past two months. Also during New York we will hear from both the BoE’s Carney, and the ECB’s Draghi. Carney is due to testify about the economic consequences of the Brexit Vote before the House of Lords Economic Affairs Committee, a topic that could create volatility in the market.
The main event for Wednesday will be the Australian inflation data. Last week we saw significant pressure in the Australian dollar after a big miss on Australian jobs. Now investors will turn their focus to the CPI print for the third quarter, which has the potential to alter the course for a RBA that has grown slightly more dovish over the past couple of weeks.
On tap for Thursday is UK growth data for Q3. This is the preliminary print, and tends to have the most impact on the markets. You can expect the quarterly print to come in at 0.3%, with the annual holding steady at 2.1%. The final estimate of UK GDP for Q2 showed an unexpected upward revision to economic growth expanding 0.7%.
Friday we get the release of the US Advance GDP for the third quarter. After a miss on Q2 growth, investors will be closely watching this print, as will the Fed. Growth falls within one of the three main considerations for a potential rate hike, along with employment and inflation.
You can find other Forex news trading events taking place this week here: Forex Factory Calendar.
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