With a barrage of disappointing data from the US yesterday, the greenback dipped, ending the day lower against most of its major counterparts. For today, however, the key event on the daily Forex news and trade opportunities is the non-farm payroll data.
4th November, AtoZForex – Other key reports on the daily Forex news list includes employment data from Canada.
#1 Canada labor data
The employment change and unemployment rate are also forecast to come at -10k and 7% respectively. The Canadian dollar has recently been dragged down by falling all prices. As attention now turns to these data, markets will be watching for divergence from expectations. USDCAD seems to be exhausted to the top side. Hence, positive data releases could prompt the resumption of a downtrend on the pair.
#2 High court rules in favor of UK parliament
The high court ruled on Thursday that PM Theresa must get approval from the parliament before invoking article 50, stating that May is legally required to pass an act of parliament before initiating Britain’s formal withdrawal from the European Union.
#3 Non-farm payroll here again
Last month, 156k jobs were added as against an addition of 171k. The latest NFP report forecasts a 175k change in the number of employed people during the last month, excluding the farming industry. The unemployment rate is expected to fall by on basis point to 4.9%. Considering heightened expectations of a December rate hike, a positive reading in the labor numbers is likely to send the USD higher.
Opportunity: Sell AUDUSD on positive data
#4 No change of BoE interest rates
The UK central bank decided on no change of BoE interest rates, where the bank’s Monetary Policy Committee (MPC) has set monetary policy to meet its 2% inflation target, therefore supporting the growth and employment levels across the country. While also unanimously voting to keep its £10 billion Pound non-financial investment-grade corporate bond buying program, which is financed by the issuance of central bank reserves. In addition, the MPC has voted to continue it’s £435 billion UK government bond buying program. The BoE has also upgraded its growth forecasts for 2016 and 2017. The bank now states that the Uk economy will grow by 2.2% this year, with the growth of 1.4% for 2017.
#5 More bad news from European banks
Germany’s second largest bank, Commerzbank reported substantial losses in the third quarter. The bank reported a net loss of €288 million, compared to a profit of €235 million during the same period in 2015. The losses followed the unveiling of CEO Martin Zielke statement that the German lender’s went through its biggest overhaul since the financial crisis.
#6 How Trump victory impacts stock market
In case Trump wins, stock markets are expected to experience some troubles. The work of two financial professors may give an insight into how stock markets may respond if Donald Trump will be chosen. They concentrated on the forecasts market and the response in the financial markets to occasions around the elections. One of the financial experts says their discoveries suggest a quick sell-off in stocks if Trump wins and a slight rally if Clinton wins.
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