The week ahead will be intense as the economic calendar is packed with top-tier macro events and releases. Traders will be offered rate decisions from the FOMC as well as Bank of England. On top of that, it is the beginning of a new month so the time has come for the release of US jobs data. Attention in Europe will be on flash CPI data for October. Be sure to watch GOLD, USDCAD and EURGBP next week.
GOLD
FOMC rate decision scheduled for Wednesday, 6:00 pm BST is a key market event of the week. The US central bank is expected to keep rates unchanged at 5.25-5.50% but leave the door open for more rate hikes if data warrants it. However, there is a risk that the upcoming FOMC meeting will be a non-event as the chance for a surprise hike is slim and there will be no new set of economic projections released. Fed is likely to find comfort to stay on hold in elevated yields that act as a kind of substitute for rate hikes.
USDCAD
USDCAD could see some more volatility on Friday as jobs data for October from the United States and Canada will be released at 12:30 pm BST. US NFP report is expected to show a weakish jobs gain of 170k, following an over-300k gain in September. ADP report on Wednesday, 12:15 pm BST as well as Challenger report on Thursday, 11:30 am BST will offer some pre-NFP hints.
EURGBP
Traders will be offered flash CPI data for October from European countries next week. Reports from Spain and Germany on Monday will be the most closely watched as they will be the first ones to be released and will set expectations for the other reports. Bank of England will announce its next monetary policy decision on Thursday, 12:00 pm BST and is expected to keep rates unchanged for the second meeting in a row.
