This week has started with a shortage of the US dollar. Investors went for riskier currencies (Euro, Cable, Aussie, Kiwi, etc.), from the first hours of trading. The stock indices continued to trade sideways while gold and silver had a pretty interesting jump, but did not keep the gains.
This week can get very interesting starting with tomorrow. In the table below you will find the economic indicators that might have the highest impact on the Forex market and will be published in the economic calendars.
| Date | Currency | Forecast | Previous | |
| TueNov 5 | AUD | Cash Rate | 2.50% | 2.50% |
| AUD | RBA Rate Statement | |||
| JPY | BOJ Gov Kuroda Speaks | |||
| CHF | CPI m/m | 0.10% | 0.30% | |
| GBP | Services PMI | 60.4 | 60.3 | |
| USD | ISM Non-Manufacturing PMI | 54.2 | 54.4 | |
| NZD | Employment Change q/q | 0.50% | 0.40% | |
| NZD | Unemployment Rate | 6.20% | 6.40% | |
| WedNov 6 | AUD | Trade Balance | -0.51B | -0.82B |
| GBP | Manufacturing Production m/m | 1.20% | -1.20% | |
| CAD | Building Permits m/m | 7.80% | -21.20% | |
| CAD | Ivey PMI | 54.7 | 51.9 | |
| ThuNov 7 | AUD | Employment Change | 10.3K | 9.1K |
| AUD | Unemployment Rate | 5.70% | 5.60% | |
| GBP | Asset Purchase Facility | 375B | 375B | |
| GBP | Official Bank Rate | 0.50% | 0.50% | |
| GBP | MPC Rate Statement | |||
| EUR | Minimum Bid Rate | 0.50% | 0.50% | |
| EUR | ECB Press Conference | |||
| USD | Advance GDP q/q | 1.90% | 2.50% | |
| USD | Unemployment Claims | 332K | 340K | |
| EUR | ECB President Draghi Speaks | |||
| FriNov 8 | AUD | RBA Monetary Policy Statement | ||
| CNY | Trade Balance | 23.5B | 15.2B | |
| CAD | Employment Change | 15.3K | 11.9K | |
| CAD | Unemployment Rate | 7.00% | 6.90% | |
| USD | Non-Farm Employment Change | 126K | 148K | |
| USD | Unemployment Rate | 7.30% | 7.20% | |
| USD | Prelim UoM Consumer Sentiment | 74.6 | 73.2 | |
| USD | Fed Chairman Bernanke Speaks | |||
| SatNov 9 | CNY | CPI y/y | 3.30% | 3.10% |
| CNY | Industrial Production y/y | 10.10% | 10.20% |
By far one of the most important days is Thursday. Australia will announce its Employment Change and Unemployment Rate, but the main events are the MPC Rate Statement and the Minimum Bid Rate for the ECB, followed by the ECB press conference. And if this it isn’t enough, the United States will release their advanced GDP and Unemployment Claims.As you can see RBA will publish its cash rate and statement, Switzerland will release the CPI, Great Britain will have the Services PMI, United States will publish the ISM Non-Manufacturing PMI and New Zealand will announce it employment change and unemployment rate. Wednesday Australia will publish the Trade Balance, for Great Britain it will be released the Manufacturing Production and for Canada the Ivey PMI and Building Pemits.
Friday the party will continue with the RBA Monetary policy, China’s Trade Balance, the Canadian Unemployment rate and the well-known Non-Farm Employment Change, which Federal Reserve is observing closely, and Unemployment rate. The day will end with a speech from Fed Chairman, Ben Bernanke.
The week will end with the Chinese CPI and Industrial Production on Saturday.
During the publishing of these indicators and events the volatility will rise for the Forex Market, but not only. If there will be surprises from the Central Banks, changes in their Monetary Policy or big differences between the forecast values and the actual values of the indicators, we can expect for interesting moves.
It is recommended for traders to adjust their trading strategy for high volatility and also to reconsider their money management so that losses can be stopped as soon as possible.
Prepare for High Volatility in the Forex Market by Razvan Mihai
