This week's ECB meeting was seen as dovish although there weren't any clear dovish hints in the statement or at Lagarde's presser. However, now attention turns to the Bank of England and Federal Reserve which are both set to announce rate decisions next week. On top of that, investors will also be offered some key US data, like ISMs and NFP reports for October. Be sure to watch GOLD, GBPUSD and US100 next week!
GOLD
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Create account Try a demo Download mobile app Download mobile appThe Fed meeting is a key macro event of next week (Wednesday, 6:00 pm GMT). Markets started to position themselves for a potential 'Fed pivot' following a report from Wall Street Journal at the beginning of the blackout period. However, recent data from the United States has been solid and actually there are little reasons for the Fed to slow its tightening process. Having said that, there is a scope for a hawkish surprise that may benefit USD while also putting pressure on gold and other precious metals.
GBPUSD
Apart from the Fed policy decision, investors will also be offered a policy announcement from the Bank of England next week (Thursday, 12:00 pm GMT). It should be noted that the last time BoE had a meeting was even before Liz Truss presented her disastrous tax cut plan. A lot has changed since, including the UK Prime Minister, and traders will be eager to hear what the Bank of England thinks about the economy and turmoil on the bond market. However, BoE may decide not to make any comments now and wait until a mid-term budget is presented in mid-November.
US100
Tech sector had a very poor week being pressured by disappointing earnings releases from US mega techs. Nasdaq-100 is the worst performing major Wall Street index this week and a hawkish surprise from the Fed may see downward pressure increase. However, there are also some US data releases on the schedule that may offer additional volatility. Those include ISMs (manufacturing - Tuesday, 2:00 pm GMT; services - Thursday, 2:00 pm GMT) and of course NFP report for October (Friday, 12:30 pm GMT), which is expected to show a 200k jobs addition.
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