The USD continues to gain versus emerging market currencies as more signs of a global growth slowdown appear. The U.S. consumer price index came in under expectations and raised concerns on how many rate hikes could the Fed get way with in 2018.
The week of October 31 to November 4 will be one of the busiest on record. Central banks, employment and growth data will be published in the middle of the final stretch of the U.S. elections. The Reserve Bank of Australia (RBA) and the Bank of Japan (BOJ) will release statements on late Monday EDT. The U.S. Federal Reserve will release its Federal Open Market Committee (FOMC) statement on Wednesday, November 2 at 2:00 pm EDT. The Bank of England (BoE) Super Thursday on November 3 will kick off at 8:00 am EDT. The week will wrap up with the release of the U.S. non farm payrolls (NFP) report on Friday, November 4 at 8:30 am EDT.
The USD advanced against most majors with the Canadian and Australian dollars the outliers as commodity prices continue to rally after the Organization of the Petroleum Exporting Countries (OPEC) production cut deal was announced. Chinese data is once again in the spotlight with the release of its real gross domestic product (GDP) and industrial production on Tuesday, October 18 at 10:00 pm EDT.
The USD was mixed against majors. The U.S. dollar appreciated against the JPY and the CHF but traded lower versus commodity currencies and the EUR and the GBP after a surprise Organization of the Petroleum Exporting Countries (OPEC) supply cut agreement and signs of a settlement between the U.S. Department of Justice and Deutsche Bank.
The U.S. non farm payrolls (NFP) report hit all the right notes with job gains, wage growth and small upticks in the participation rate leaving the unemployment rate steady at 4.9 percent but the biggest contribution was easing market fears about the slowdown of the American economy after a soft advanced gross domestic product (GDP).