Last Week Recap
The U.S dollar index continued its bullish momentum last Thursday after ECB’s dovish statement, the central bank decided to cut QE To €30 Billion, and the comments from president Draghi that the strong euro threatens economic growth in the euro area. This development put the EURO under heavy pressure, the EURUSD fell almost 260 pips in less than 48 hours?!
On the dollar side, the USD index continues its bullish momentum on Thursday, topped at the 93.32 levels and topped at the 94.57 levels. Resistance comes at the 95.00 levels, a halt is likely, in case of a corrective pullback support comes at the 94.57 levels where rebound is likely, anyway, above 95.00 will aim the 95.57 levels, further upside resistance stands at the 96.07 levels ahead of the 97.11 levels.
On the downside, support comes at the 94.57 levels, below that level should weaken recent rise and open the 94.05 levels, further down will aim the 93.32/93.02 levels before another rising.
Ahead of the coming week, the global financial markets will shift their focus to the Wednesday’s minutes of the Federal Reserve’s latest policy meeting for further hints on the timing of the next U.S. rate hike as well as central bank meeting in England followed by Friday’s U.S nonfarm payrolls report. anyway; here is a list of the biggest events on the economic calendar that are most likely to affect the markets this week:
Tuesday, October 31
Financial markets in Germany will be closed for a holiday (Reformation Day). The EURUSD may see recovery before falling.
China will report on Manufacturing PMI for Oct.
The Bank of Japan will announce its benchmark interest rate and publish a rate statement.The announcement is to be followed by a press conference. The Bank of Japan is not expected to make any changes to its monetary policy.
The eurozone will publish preliminary data on inflation and third-quarter economic growth.
Canada will release data on economic growth followed by Bank of Canada Governor Stephen Poloz.
The U.S will report on CB Consumer Confidence.
Wednesday, November 1
China will report on Caixin Manufacturing PMI.
The UK will release a report on Manufacturing PMI.
The U.S will report on ADP Nonfarm Employment Change followed by ISM Manufacturing PMI.
The Fed will announce its benchmark interest rate and publish a rate statement on Wednesday at 18:00 GMT. The Federal Reserve is not expected to make any changes on the interest rate.
Thursday, November 2
Germany will release data on German Manufacturing PMI followed by German Unemployment Change.
The UK will report on Construction PMI.
The Bank of England will announce its latest interest rate decision and publish its meeting minutes followed by BoE Governor Mark Carney speech.
The U.S will release the weekly report on initial jobless claims followed by New York Fed President William Dudley speech.
Friday, November 3
Financial markets in Japan will be closed for a holiday.
Australia will report on retail sales.
The U.K will release data on Services PMI
The U.S will report on the nonfarm payrolls report for October as well as data on ISM Non-Manufacturing PM.
Canada will report on Employment Change.
You can follow the rest of the week’s economic events by visiting:
Conclusion: Since USD index is up, U.S data is supposed to bring a buying opportunity for U.S dollar.