Federal Reserve and Bank of England will announce monetary policy next week. Both central banks may make major announcements so traders should watch precious metals, GBP and USD closely. Apart from that, jobs data from the United States and Canada at the end of the week will provide a volatility boost on the FX market. Be sure to watch GOLD, USDCAD and EURGBP next week!
GOLD
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Create account Try a demo Download mobile app Download mobile appThe upcoming FOMC meeting may finally bring an official taper announcement. However, a weakish US Q3 GDP report released last week made the decision less clear. As US central bankers will meet before release of October's jobs data, they may decide to postpone tapering until December. In any case, elevated volatility on stocks, USD and precious metals can be expected. Gold price hovered near $1,800 last week and FOMC decision on Wednesday, 7:00 pm BST may provide fuel for a bigger move.
USDCAD
While FOMC is a top macro event of the week, release of jobs data from the United States is also high on the agenda. Data for October from the US and Canada will be released on Friday, 1:30 pm BST. 400k increase is expected in US employment more than in each of the past two months. ADP report will be released on Wednesday, 1:15 pm BST as a final hint. Meanwhile, Canadian data is expected to show the smallest jobs gain since May. USDCAD dropped this week, thanks to a hawkish BoC, but remain above lows from the week before.
EURGBP
Federal Reserve is not the only major central bank that will announce a rate decision next week. GBP traders will focus on the Bank of England decision on Thursday, 12:00 pm BST. Both rates and QE settings are expected to remain unchanged. However, given the recent jump in inflation, markets hope for a somewhat more hawkish message. One rate hike is fully priced in for this year but whether it will be made next week is not certain. EURGBP lost some ground this week but the move lacked momentum.
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