A1 Trading Company

Ticker tape by TradingView

November 6, 2021

Forex Market Recap (31-05 November 2021)

Bart Kurek

The big move of the week was the drop in GBP as markets were surprised by the BoE holding off on policy changes. Sterling dropped right after the news and could find a way to recover before the weekend. The big winner was the Japanese yen, again the usual beneficiary in risk-off environments which was likely the lean this week due to inflation and supply chain concerns.

USD:

  • ISM Manufacturing PMI in October 60.8 vs 61.1 in September
  • US Treasury plans to borrow $1.015T in Q4, more than the August estimate of $703B
  • FOMC statement: Fed will reduce bond purchasing program by $10B Treasury and $5B in mortgage-backed securities
  • FOMC says that inflation will last “well into next year”
  • Markit Services PMI in October 58.7 vs 54.9 in September
  • ADP National Employment Report: Private Sector Employment Increased by 571,000 Jobs in October
  • Biden says the economy is recovering faster than expected
  • NFP in October 531k vs 455k expected

EUR:

  • Eurozone factory growth hurt by supply woes, price pressures in October
  • French Manufacturing PMI fell to 53.6 in October, down from 55.0 in September
  • Germany Manufacturing PMI fell to 57.8 in October, down from 58.4 in September
  • Lagarde says ECB is "very unlikely" to hike rates next year
  • ECB’s Vasle sees growing risk that inflation will stay elevated
  • German factory orders up 1.3% vs 1.7% forecast, -8.8% previous
  • German industrial production unexpectedly drops by 1.1% in September
  • Euro area retail sales down by -0.3%

GBP:

  • Manufacturing PMI in October 57.8 vs 57.1 in September
  • Services PMI in October 59.1 vs 55.4 in September
  • Bank of England defies markets, keeps rates on hold at 0.10%; two members voted for an immediate raise to 0.15%
  • House prices rose for a fourth month running in October, climbing above an average of £270K
  • Bank of England should be cautious about raising rates
  • BOE Governor Bailey says jobs market will provide missing clues to rate hike timing

CAD:

  • Manufacturing PMI in October 57.7 vs 57.0 in September
  • Building permits rose 4.3% to $10.1B in September
  • Employment in Oct.: +31,200 vs 50,000 forecast; unemployment rate ticked lower to 6.7% from 6.8%

JPY:

  • Manufacturing PMI in October: 53.2 vs 51.5 in September
  • Japanese finance and economy ministers meet and reaffirm the commitment to 2% inflation target
  • BoJ Kuroda says they're in "no rush to exit stimulus even if Fed tapers"

AUD:

  • Job advertisement series rose 6.2% in October, recovering the losses of the previous three months during the COVID-19 restrictions
  • Manufacturing PMI for October 50.4 vs. 51.8 previous
  • RBA held its cash rate at 0.10% as expected
  • RBA drops projection for no rate rise until 2024, but remains patient with expectations for hike in 2023
  • Services PMI for October 51.8 vs 45.5 in September
  • Retail sales rose 1.3% as expected
  • Services PMI improves from 45.7 to 47.6

NZD:

  • RBNZ considering debt servicing restrictions and interest rate floors to fight housing-related financial stability risks
  • Jobless rate drops to record low of 3.4%, participation and hourly wages up in Q3 2021
  • Commodity prices up by 2.1% after previous 1.5% gain

A1 Edgefinder

#1 Market Scanner Tool
Take 10% off using code "READER"
GET ACCESS NOW
Want to See Our Trades?

Join The VIP Community!

Our entries, exits & analysis
Live Webinar Coaching
Trading Chatrooms
Strategy Library 
Exclusive Trading Guides
Use Code "READER" for 10% OFF!
JOIN NOWJoin FREE Discord
Listen to More Episodes
Why the New FOMC Decision Matters

Yesterday, the Federal Open Market Committee (FOMC), the Federal Reserve’s policy-making body, implemented yet another 75 basis point interest rate hike. While this move was perfectly in line with market forecasts, Chair Powell’s comments following the subsequent press conference, in which he discussed the FOMC’s new set of economic projections, were significant. He continued to […]

Read More
Shocking CAD Inflation News

Statistics Canada released a surprising new batch of inflation data this morning: month-over-month CPI failed to meet market forecasts, declining by 0.3% instead of the anticipated 0.1%. Rather than being an outlier, the other measurements of CPI mostly followed suit, as both year-over-year Trimmed CPI and Median CPI likewise failed to meet expectations. Trimmed CPI’s […]

Read More
2 Paths for Aussie Bears

At 9:30 pm Eastern Time tonight, the Reserve Bank of Australia (RBA) will be publishing their latest round of monetary policy meeting minutes. While there is a chance that their intentions could come across as more hawkish than expected, they currently have little reason to be. Despite relatively low unemployment at 3.5%, steady GDP growth, […]

Read More
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
Home
Edgefinder
VIP
Menu
homesmartphonelaptopmenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram