We are expecting a FX and stock market critical week

Even a glimpse of the calendar would make you think twice before taking a trade this week. In the next five days, we will gain insight into the development of a large part of the world's economic performance, Bank Of England's decision on the country's basic interest rate and Non Farm Payrolls in the United States. Already on Tuesday, traders will focus on the euro area GDP data and the German CPI. Two of the most important economic indicators will be announced with a difference of 3 astronomical hours, with expectations for worse data that could send the euro to new bottoms.

Later in the week, on Wednesday investors will be watching the preliminary data on new jobs in the US. Estimates are again low compared to the previous period, 190K versus 230K earlier. The data will be of crucial importance for the USD as better data would send the greenback to a new high before the official data on Friday.

On Thursday, traders and investors will turn their attention to Bank Of England, whose members will decide on the base interest rate in the country. Given the tension that has arisen around Brexit, I expect the Central Bank to maintain a moderate tone and not to make any changes. As a result, I expect GBP to take on new bottoms.

The official data on US jobs is expected at 14:30 on Friday. expectations for official data are positive, with better ones the USD will record a strong upward momentum, and worse, the correction will not be limited to USD but will also drag the stock market.

Here's the main economic catalyst next week:

Monday
02:50 Japan - Retail sales
03:00 Australia - Sales of new homes
15:30 UK - Autumn Budget

Tuesday
02:30 Japan - Unemployment rate
03:30 Australia - Building permits
09:30 France - GDP
11:00 Switzerland - Leading indicator of KOF
11:55 Germany - Unemployment rate
13:00 Eurozone - GDP
16:00 Germany - CPI
17:00 USA - Consumer Confidence
23:30 US - API Petroleum Stocks

Wednesday
00:45 New Zealand - Building permits
03:00 New Zealand - Business Trust
03:30 Australia - CPI
04:00 China - Production PMI
No Schedule - Japan - Bank Of Japan Interest Rate
10:00 Germany - Retail
13:00 Eurozone - CPI
13:00 Eurozone - Unemployment rate
15:15 USA - ADP Non Farm Payrolls
15:30 Canada - GDP
17:30 US - Crude oil inventories

Thursday
00:30 Australia - Production Index of AIG
03:30 Australia - Trade Balance
04:45 China - Production PMI
09:45 Switzerland - Consumer Climate
12:30 UK - Production PMI
15:00 United Kingdom - Bank Of England Basic Interest Rate
15:00 United Kingdom - Bank Of England Inflation Report
15:30 UK - Speech by Mark Carney
17:00 USA - ISM Production PMI

Friday
Holiday day in Japan
03:00 New Zealand - Business Trust
03:30 Australia - Retail
11:15 Switzerland - Retail
11:55 Germany - Production PMI
12:30 UK - PMI in construction
15:30 USA - NFP
15:30 USA - Unemployment rate
15:30 Canada - Unemployment Rate
15:30 Canada - Trade Balance

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