What to expect next week - 30.10 - 03.11.2017

Last week, the most important event for investors was the decision on the key interest rate and the size of the ECB's quantitative easing program. The central bank kept the base rate, but reduced the amount of the €60bn quantitative facility. to €30 billion, from January to September 2018. The news had a strong negative impact on the euro and supported European indices. On the last working day of the week, the euro continued its bearish momentum, backed by the announcement of the independence of Catalonia and the subsequent response of the central government, which activated Article 155 of the Spanish Constitution. This means that Madrid will impose its administration despite the will of Catalonia. Shares continued their upward trend, also supported by good financial reports during the week, with technology companies leading.

The next week is filled with important economic news, as Bank of Japan will hold a press conference Tuesday as traders will look for more information about the bank's monetary policy after the country's election. On Wednesday, we will receive preliminary data on new US jobs from ADP, with expectations very positive (+ 315K) after negative data last month (-33K). Later that day, the Fed will announce its decision on the US interest rate. Market participants are of the opinion that change should not be sought, but rather information about whether we will see an increase in December. On Thursday, we expect a number of euro area countries to produce PMI, and later in the day, Bank Of England will announce its decision on the base interest rate, the amount of quantitative facilities and the point plan on how members voted. The data will put an end to speculation about whether BOE will raise interest rates or not and will show the sentiment among members of the bank. On Friday, investors will focus their attention on official data on new jobs in the United States. Expectations are very positive, and if we see better results than projected 300K, support for the dollar will increase.

Economic data and events that will move markets next week

Monday
02:50 Japan - Retail sales
10:00 Germany - Retail sales
11:00 Switzerland - KOF Leading Indicator
11:00 Spain - GDP
15:30 USA - Consumer Expenditure Index
16:00 Germany - Consumer Price Index

Tuesday
Holiday day in Germany
We expect the basic interest rate for Japan, with no scheduled time.
00:45 New Zealand - Building permits
02:30 Japan - Jobless claims
02:30 Japan - Household expenses
02:50 Japan - Industrial production
03:00 Australia - Selling New Homes
03:00 Australia - Business confidence
04:00 China - PMI in manufacturing
09:30 Japan - Bank Of Japan Press Conference
10:45 France - Consumer spending
13:00 Eurozone - Consumer Price Index
13:00 Eurozone - GDP
13:00 Eurozone - Unemployment rate
15:30 Canada - GDP
16:45 USA - PMI of Chicago
17:00 USA - Consumer Confidence

Wednesday
00:45 New Zealand - Unemployment rate
04:45 China - Production PMI
12:30 UK - Production PMI
15:15 USA - ADP Non Farm Payrolls
17:00 USA - ISM Production PMI
17:30 US - Oil Stocks
21:00 United States - Fed decision on the base interest rate

Thursday
03:30 Australia - Building permits
03:30 Australia - Trade Balance
09:45 Switzerland - Consumer Climate
11:00 Spain - Unemployment rate
11:15 Switzerland - Switzerland retail sales
11:15 Spain - Production PMI
11:45 Italy - Production PMI
11:50 France - Production PMI
11:55 Germany - Production PMI
12:00 Germany - Unemployment rate
12:00 Eurozone - Production PMI
12:30 UK - PMI in construction
15:00 United Kingdom - Bank Of England Decision on the Base Interest Rate
15:00 UK - Decision on the size and duration of the quantitative easing program
15:30 UK - Speech by Mark Carney, Governor of Bank Of England
15:30 USA - Requests for unemployment benefits

Friday
03:30 Australia - Retail sales
04:30 China - PMI in the service sector
12:30 UK - PMI in the service sector
15:30 USA - Non Farm Payrolls
15:30 USA - Average hourly wage
15:30 US - Trade Balance
15:30 USA - Unemployment rate
15:30 Canada - Unemployment Rate
15:30 Canada - Trade Balance
17:00 USA - PMI in the manufacturing sector

Jr Trader Petar Milanov

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