The Week Ahead: Monetary Policy, Retail Sales & CPI
Let's look at the news event's we've got lining up this week...
(AUD) Monetary Policy Meeting Minutes
During the previous rate decision, the RBA kept their interest rates on hold as expected. However, the RBA has removed its yield curve control target on the April 2024 government bond since it is "losing credibility". The transcript during this event should provide more insight on when policymakers think their first tightening move may happen.
(USD) Retail Sales
The USD Retail Sales Report is set for Tuesday which shows the total value of sales at a retail level. Consumer spending accounts for a majority of economic activity, and therefore when citizens spend, it is a sign that people have jobs, people are making money, and people are able to spend money for whatever it is they want.
A pickup in consumer spending is eyed for October, with the headline figure expected to rise from 0.7% to 1.2% and the core reading to also pick up from 0.8% to 1.0%. These increases were likely caused by the rebound in auto sales, on top of the improvement in the labour market situation.
The Consumer Price Index (CPI) report measures the change in the average price basket of goods and services by consumers, which can be anything from food, transportation and medical care. Changes in the CPI are used to assess price changes associated with living in the country. It is one of the most used statistics to identify periods of inflation or deflation.
Another surge in UK inflation is eyed, with the headline figure expected to climb from 3.1% to 3.8%. This may be enough to spark BoE rate hike bets once again, as stagflation remains a persistent threat to the UK economy.
The BoC is also releasing its inflation figures this week as well as related indicators of price pressures. The headline CPI report doesn't currently have a forecast, but later in the week keep an eye on this event. Stronger than expected results could fuel monetary policy tightening expectations from the BoC.
Smart Money Tracker
See where big money is flowing with the A1 Edgefinder's smart money tracker! With one click, see where the biggest money flows are entering and exiting through COT data.
Today at 2:00 pm EST, the Fed will announce their latest interest rate decision. Estimates suggest a smaller hike of 25 basis points this time around. Here are some things to consider before the FOMC decision later today: The Fed has struggled to tighten their grip on inflation without causing too much disturbance in the […]
With the holiday season lingering on and a new year on the cusp of arrival, traders may glance at the calendar and notice there is not much economic news to anticipate on Friday to cap off a light week. In situations like these where there can be lulls in bullish and bearish momentum due to […]
As the fiscal year comes to a close, consumers will likely finish shopping for the holidays, and traders and investors will get some respite thanks to a long weekend due to bank holidays around the world. While concerns about further stock market selloffs may be lingering in the minds of some, a promising set of […]
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