It was a historic past week. Massive moves in gold, Sterling and oil. We commence the new week with bank holidays, however, the rest of the week is saddled with major news from the US as we look at the daily Forex news and trade opportunities.
10th October, AtoZForex – A major focus of the daily Forex news this week will be the FOMC Meeting Minutes due on Tuesday.
#1 Sterling crashes on fat finger error
The pound sterling dipped about 6% in less than a minute, only to recover about 5% in the following minutes. It is speculated to have been triggered by a “fat finger error” following comments of a “hard Brexit” from French President Francois Hollande.
#2 FOMC Meeting Minutes
Having declined from cutting rates for the first time this year in the last meeting, the Federal Reserve policymakers are perhaps left with only one chance to cut rates this year. However, the FOMC meeting minutes will give a clearer highlight of the mindset of these policy makers.
#3 IMF warns that China is heading towards a financial crisis
According to the International Monetary Fund (IMF), China could be entering the financial recession times due to the level of its financial and corporate debt. What will be the consequences for the rest of the world?
#4 Brexit process to start in March
Prime Minister Theresa May exposed more information about the Article 50 of the Lisbon Treaty implementation process. During the weekend Conservative Party conference, the UK Prime Minister revealed that no unnecessary delays will be taken to invoke Article 50, aiming by the end of March 2017.
#5 Fed Vice Chair Fischer says Fed needs help to hike
According to the Federal Reserve (Fed) Vice Chairman Stanley Fischer, the proof that the natural interest rate has dropped to low levels could signal the stagnation of the economy in the low-growth track that could prove hard to avoid. Hence, he is worried about the shifts in world savings and investment models that may have dragged down the natural rate could “prove to be quite persistent…We could be stuck in a new longer-run equilibrium characterized by sluggish growth.”
#6 US unemployment higher, NFP below forecast
The US unemployment rate increased to 5.0% for the first time in four months, Thanks to an increase in the labor participation rate to a six-month high. The non-farm payroll figure showed 156k job additions, which still shows a positive standing on employment in the past month. The average hourly earnings were also higher and in line with the forecast at 0.2%. Although mixed, all in all, the report showed a positive picture of the labor situation.
#7 Theresa May warned against “hard Brexit”
Carolyn Fairbairn, director general of the Confederation of British Industry (CBI) is one of many business leaders to warn the British PM about a “hard Brexit”. Seeking that Theresa May takes action to mitigate against the “worst aspects” of a hard Brexit break with the EU as it would do serious and lasting damage to the economy.
#8 US data
We have key US data due this week. Ranging from the retail sales to producer price index and Prelim UoM Consumer Sentiment. Also, FOMC Member Rosengren is due to speak, as well as Fed chair Yellen Due to deliver a speech titled “Macroeconomic Research After the Crisis” at the Federal Reserve Bank of Boston’s Annual Research Conference. It is no doubt going to be a big week for the dollar.
#9 2nd US election debate showdown
It was a feisty debate between Donald Trump and Hillary Clinton. Results are mixed about who won this time, however, one thing is for sure. Trump managed to do better than most expected, considering the scandal surrounding him about his lewd comments about women coming into the debate.
#10 Goldman Sachs readies to cut about 2,000 jobs
According to the Sunday Times, Goldman Sachs is preparing to move about 2,000 jobs out of the UK if the country’s financial passporting right is revoked. The bank is said to be prepared to move a third of its 6,000 strong UK workforce to mainland Europe in the event of a “Hard Brexit.”
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