Fed Chair Janet Yellen commented on Sunday that the US economy remains strong and the continued strength of the labor market calls for a gradual increase in interest rates, despite subdued inflation. What will be moving markets today? This 16 October Must Watch Daily Forex Events Overview from FxPro will guide you through the day.
16 October, FxPro – At an international banking seminar in Washington DC Yellen said:
“We will be paying close attention to the inflation data in the months ahead”
“My best guess is that these soft readings will not persist” & “We continue to expect that the ongoing strength of the recovery will warrant gradual increases in that rate to sustain a healthy labor market and stabilize inflation around our 2 percent longer-run objective”.
EU Markets Outlook
The Austrian election appears to highlight another country focusing on Nationalistic policies. The conservative People’s Party, led by Sebastian Kurz, appear to be on track to win the election with 31.6% of the vote. Kurz’s campaign focused on stronger border controls, reducing the number of immigrants and cutting benefits for newcomers.
The obvious concern is for another country to go against its Euro members stance on immigration and what that could mean for Austria and the greater Eurozone.
Politics remain in focus, as Catalan leader Carles Puigdemont has until 09:00 BST to clarify as to whether he is calling for Catalan’s independence from Spain. Spanish Prime Minister Rajoy gave Puigdemont until Monday to declare his intentions and until Thursday if he changes his decision.
Rajoy has made it clear that a call for Catalan independence will result in that region’s suspension from the Spanish parliament.
Forex and Commodities Markets Outlook
EURUSD is little changed from Friday’s close, currently trading around 1.1810.
USDJPY is 0.15% higher to currently trade around 111.95.
GBPUSD is little changed in early Monday trading. Currently, GBPUSD is trading around 1.3295.
Gold is 0.16% lower to currently trade around $1,302.50.
WTI is nearly 1% higher in early Monday trading. Currently, WTI is trading around $52.15.
16 October Must Watch Daily Forex Events Overview
At 09:00 BST is the deadline for the Catalan Prime Minister to confirm his region’s intention to declare independence. Any answer other than a “No” will result in the dismantling of the Catalan Government, leading to civil unrest and the likelihood of a sell-off in EUR.
At 10:00 BST, Eurostat will release Eurozone Trade Balance for August.
This article ‘ 16 October Must Watch Daily Forex Events ‘ is a marketing communication. It is not an investment advice or an investment recommendation. Past performance is not a guarantee of or prediction of future performance.
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