Trading Week Outlook Oct 5 – 10 2014 This trading week is shaping up to be an eventful one after last week we heard Mario Draghi announce that monetary stimulus will be coming this month. However we are still waiting to hear how much will be introduced. In addition the good numbers keep on coming for the USD with great NFP numbers coming out on Friday reaffirming traders beliefs that this run is for real. This coming week there is sure to be some action that will stir things up. Of major note : Monday: EUR factory orders, CAD PMI, and NZD business confidence. Lets see what happens with the NZD this week after it had a nice run up last week. CAD took a beating with poor numbers last week. Tuesday is a big day for the JPY and AUD. With a monetary policy statement due out from JPY there could be a move after. With a mix of policy makers saying the currency has been devalued too much and then Abe and his team of cohorts working towards meeting the 2% inflation goal. This pair is facing a dangerous tug of war between policy makers. Watch for a statement regarding the health of the economy and it’s ability to meet it’s inflation goal. AUD will be making a rate decision and a statement afterwards. AUD may cut rates as the bank governor has stated he will use the tools at his availability as necessary. Wednesday we have the release of Fed Rate minutes. Lets look out for more hawkish language. Anything less may result in a pullback for the USD. Thursday we have USD unemployment and a speech from Mario Draghi where he may announce the commencement of quantitative easing with a bond buying program and look for the amount that they will be expanding the balance sheet towards. This will be a good barometer for what kind of move to expect between the pairs. Friday is a pretty calm day with a few minor CAD and USD economic releases around 830 am GMT
Posted on: Sun, 05 Oct 2014 09:48:27 +0000