Last week, the U.S. dollar traded mixed in spite of big events happening in the markets. Jay Powell was nominated as the next Fed Chair. Developments related to Mueller investigation continued to trouble President Donald Trump and, therefore, he settled for an insider, and not the known hawk John Taylor, to head the Fed. As such, the U.S. central bank is expected to continue with the current policy. Janet Yellen, the current Fed Chair, supervised one of her last interest rate decisions. The statement released by the FOMC expressed satisfaction about economic growth but noted that inflation continues to remain soft. However, it is expected that the interest rates will be hiked during the FOMC meeting next month.
Meanwhile, the dovish interest rate hike announced by the Bank of England did move the markets a little bit. After announcing the rate hike that was widely expected by the market, Carney and his team said that there will be two interest rate hikes in the next three years. The pound tumbled down following their statement. There is no resolution in sight as far as Catalonia is concerned, but the euro continued to ignore the same.
#1: New Zealand Inflation Expectations (11/06/2017 Monday 2:00 GMT)
The Reserve Bank of New Zealand’s survey revealed that the near-term inflation expectations declined in the September quarter. The report underscored the central bank’s commitment to keeping policy stimulatory for some more time to come. The quarterly survey carried out by the Reserve Bank of New Zealand showed that business managers expected annual inflation to be around 1.77 percent during the coming year, down from 1.92 percent reported in the previous survey. Inflation expectations for the two-year period edged down to 2.1 percent from 2.17 percent.
#2: Bank of Japan Governor Haruhiko Kuroda Speaks (11/06/2017 Monday)
Haruhiko Kuroda, the Governor of the Bank of Japan, is scheduled to speak at a business leaders’ meeting in Nagoya. Markets often remain volatile during his speeches. This is because traders look for clues on the direction of interest rate.
#3: Australia Interest Rate Decision (11/07/2017 Tuesday 3:30 GMT)
The Reserve Bank of Australia made some dovish remarks recently and said that the interest rate may be cut, though not in the immediate future. After these remarks, the inflation report came in much below expectations and weighed down on the Australian dollar.
The central bank decided to hold the cash rate unchanged at the record low level of 1.5 percent at the meeting in October as was widely expected. According to policymakers, a pick-up in investments in non-mining business over the recent months is a welcome development. They also noted that the low level of interest rates continued to support the economy. Forecast for November: 1.5 percent
#4: Reserve Bank of Australia Rate Statement (11/07/2017 Tuesday 3:30 GMT)
The Reserve Bank of Australia’s rate statement is a tool for communicating with investors as regards the monetary policy. It provides information about the outcome of members’ decision on setting interest rates and commentary on the economic conditions in the country that impacted their decision. More importantly, it provides an economic outlook and clues on the direction of interest rate in the future.
#5: European Central Bank President Mario Draghi Speaks (11/07/2017 Tuesday 9:00 GMT)
Mario Draghi, President of the European Central Bank, is scheduled to deliver the opening remarks at the meeting of the European Central Bank Forum on Banking Supervision. The meeting is in Frankfurt. Markets often remain volatile during his speeches as traders look for clues on the direction of interest rates in the future.
#6: Bank of Canada Governor Stephen Poloz Speaks (11/07/2017 Tuesday 17:55 GMT)
Stephe Poloz, the Governor of the Bank of Canada, is scheduled to deliver a speech 15 minutes after the text of his speech is released at the specified time. He is also scheduled to hold a press conference 65 minutes after the speech text release time. He will speak on the ability of the central bank to understand inflation at the said event which is jointly hosted by the Montreal Chartered Financial Analyst Society and the Council on Foreign Relations in Montreal. The audience is expected to ask questions. Markets remain volatile during his speeches as traders look for clues on interest rates.
#7: U.S. Fed Chair Janet Yellen Speaks (11/07/2017 Tuesday 19:30 GMT)
Janet Yellen, the Fed Chair, is scheduled to deliver acceptance remarks at the Paul H. Douglas Ethics Award presentation in Washington DC. Market volatility can be expected during her speeches. This is because traders try to understand the direction of interest rates in the future.
#8: U.S. Crude Oil Stocks Change (11/08/2017 Wednesday 15:30 GMT)
In the U.S., the crude oil stocks dropped by 2.435 million barrels during the week that ended on October 27. In the prior period, stocks increased 0.856 million barrels. Analysts had expected crude oil stocks to decline by 1.756 million barrels. Gasoline stocks decreased by 4.02 million barrels after inventories dropped by 5.465 million barrels in the prior period. The reading came in much worse than the market expectation of a decrease of 1.506 million barrels.
#9: New Zealand Official Cash Rate (11/08/2017 Wednesday 20:00 GMT)
A week after the release of the job report the kiwi dollar remains weak and the Reserve Bank of New Zealand (RBNZ) is getting ready to decide its monetary policy. The interest rate currently stands at 1.75 percent. Since November 2016, when the interest rate was cut last, it has been at this level. The big drop in the exchange rate is likely to keep Grant Spence, acting Governor, and other policy makers happy. Further, the new government, led by the labor party, is expected to change the central bank’s mandate.
In the meeting in September, the RBNZ decided to leave the official cash rate at the record low level of 1.75 percent. This was expected by the market. Policymakers noted that global economic growth continued to improve in the recent quarter. They also noted that there has been an easing of the trade-weighted exchange since August and that annual inflation eased in the second quarter and remains within the expected range. In addition, the central bank said that the monetary policy might continue to remain accommodative for some time because of the uncertainties that remain. Forecast for November: 1.75 percent
#10: Reserve Bank of New Zealand Rate Statement (11/08/2017 Wednesday 20:00 GMT)
The RBNZ uses the rate statement as a tool to communicate with investors as regards the monetary policy. It provides the outcome of the members’ decision on interest rates. It also includes a commentary on the economic conditions that impacted their decision. More importantly, the statement discusses the country’s economic outlook and provides clues on the direction of the interest rates in the future.
#11: Reserve Bank of New Zealand Press Conference (11/08/2017 Wednesday 21:00 GMT)
The RBNZ holds a press conference every quarterly after the announcement of the Official Cash Rate. The press conference lasts for about 30 minutes and has two parts: the reading of a prepared statement and questions by the press. Markets often remain volatile during the press conference and some questions may lead to unscripted answers.
#12: U.S. Unemployment Claims (11/09/2017 Thursday 13:30 GMT)
The number of American people filing for jobless benefits declined 5,000 to 229,000 during the week that ended on October 28. The reading came in below analysts’ expectation of 235,000. The figure for the previous week was revised upward by 1,000 to 234,000. In the Virgin Islands, claims taking procedure continued to be disrupted. In Puerto Rico, backlogs are being processed now. Forecast for the next period: 231,000
#13: Swiss National Bank Chairman Jordan Speaks (11/09/2017 Thursday 16:30 GMT)
Thomas Jordan, Chairman of Swiss National Bank, is scheduled to deliver a speech in Frankfurt at the Center for Financial Studies Presidential Lecture. The topic is “Independence of Central Banks after the Financial Crisis: The Swiss Perspective”.
#14: Reserve Bank of Australia Monetary Policy Statement (11/10/2017 Friday 00:30 GMT)
The Reserve Bank of Australia releases the monetary policy statement on a quarterly basis. It offers valuable insight into the central bank’s view on inflation and economic conditions. These are the major factors that influence the monetary policy decisions.
#15: U.K. Manufacturing Production (11/10/2017 Friday 9:30 GMT)
In the U.K., manufacturing production increased by 0.4 percent on a month-on-month basis in August, following a 2.7 percent surge in the production of basic metals. Basic metal production recorded the largest gain since December 2016 and recovered from the 3.2 percent plunge in July.
On a year-on-year basis, manufacturing production rose 2.8 percent in August after the reading for July was revised upward to an increase of 2.7 percent. The reading for August came in above analysts’ expectation of 1.9 percent. Manufacturing production increased at the fastest rate since February.
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