Brexit, central banks headline huge week ahead

October 28, 2019

An avalanche of data and activity is scheduled this week, with Brexit and central bank coming into focus.

The EURUSD fell below $1.11 on Friday after trading flat for a large chunk of the day. The pair opened Friday at $1.11030 and was flat in early trading, ticking up to a high of $1.11226 mid-session. The euro fell away from those highs, bottoming-out at $1.10721 late in the day. It has come off those lows and is currently trading at $1.10817. The GBPUSD was steady on Friday after opening at $1.28500. The pound edged up to a high of $1.28625 mid-session before dipping to lows of $1.28033 late in the day. It has come off those lows and is now trading at $1.28303.

The Dow sprung to life late in the day, posting some solid gains to end the week. The index began the day at 26,824.47 and was flat for the first half of the day, dipping to lows of 26,766.65 mid-session. The Dow rallied off those lows to peak at 27,025.15. It is not far off those highs at the moment, currently trading at 27,013.78. The Dax posted some modest gains on Friday to round out a strong week. The German index opened the day at 12,858.62 and traded in a tight range early, dipping to lows of 12,831.03 midway through the day. The Dax bounced off those lows, climbing to highs of 12,899.31 late in the day before closing at 12,894.64.

The week ahead will be dominated by the latest events surrounding Brexit, while several central banks will be holding interest rate meetings this week. The UK parliament will vote on whether to head to a general election, which will have implications on Brexit. Meanwhile, the US Fed Reserve headlines the list of central banks holding rate meetings.

Data published today and the most important this week includes:

Today – European Private Loans & M3 Money Supply, German Import Prices, UK CBI Realised Sales, US Goods Trade Balance & Prelim Wholesale Inventories

Tuesday – UK Brexit vote, RBA Governor Philip Lowe speaks

Wednesday – US Advance GDP, CB Consumer Confidence and ADP Non-Farm Employment Change, Australian CPI & Trimmed CPI

Thursday – US Federal Funds Rate, FOMC Statement, Press Conference and Personal Spending, China Manufacturing PMI Australian Building Approvals, BoJ Policy Rate, Monetary Policy Statement and Press Conference, BoC Overnight Rate, Rate Statement, Monetary Policy Report and Press Conference, Canadian GDP, NZ Business Confidence

Friday – US Non-Farm Employment Change, Average Hourly Earnings, Unemployment Rate and ISM Manufacturing PMI, China Caixin Manufacturing PMI


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