Welcome to the Investors Trading Academy economic calendar of the week.
Each week our news analysts review the upcoming economic events that you should be monitoring.
Mario Draghi manipulated the markets like a master after the ECB held rates and policy
as expected.
Draghi’s comments sent the euro tumbling 200 points.
On the heels of the ECB were surprising earning reports in the US.
Traders were expecting a round of gloomy data, but reports have been pretty rosy.
On Friday, an unexpected move from the People Bank of China sent equities and commodities
rallying.
This week’s Federal Reserve meeting could be anti-climactic.
Expectations are low the Fed will provide any new policy insight in the coming week,
and focus should stay on economic reports and a flood of earnings, from Apple, big oil,
drug makers and others.
In fact, strategists say more clarity on what the Fed might do should come from the employment
report the following week.
Market expectations put a less than 5 percent chance on the Fed raising rates at its two-day
October meeting, and the odds are not even that high for the Fed's December meeting.
The ECB President signaled that more QE and lower deposit rates could come as soon as
December, sending EUR lower across the board.
Fed inaction has put the Bank of Japan in a tough spot.
BOJ Governor Haruhiko Kuroda is expected to announce an increase to the bond buying program
to boost growth as the latest inflation data has disappointed.
On Thursday Investors’ attention will turn to the October BoJ meeting where economists
expect another round of easing.
If confirmed, model simulations have shown that more QE should lift USD/JPY by more than
4%.
US data dominates the economic calendar in the coming week with the highlight being the
Federal Reserve meeting on Wednesday.
And the week kicks off on Monday with data on new home sales while the Dallas Federal
Reserve manufacturing survey is released.
On Tuesday, the Case Shiller measure of home prices will be released with a gauge of consumer
confidence and figures on orders of durable (or long-lasting) goods with the latter also
serving as a proxy for business investment.
Also surveys are released by the Richmond and Dallas Federal Reserve districts.
On Thursday the first estimates of economic growth are expected for the September quarter
with economists tipping annualized growth rate of 1.7 per cent -- a result that gives
the Fed more ammunition to justify the low rate environment.
Also on Thursday is the release of weekly data on claims for unemployment insurance
and pending home sales.
And on Friday, data on personal income and spending is issued with the final reading
of the consumer sentiment index for October from the University of Michigan.