With a lot of traders starting to close up shop for the year, it’s not hard to imagine investors using major news reports as catalyst for their profit-taking moves. Fortunately, the red flags in your economic calendars can be grouped into just two economic events:
1. Central bank statements
Remember the time when we saw a lot of jawboning from the major central banks? Well, it can happen again this week!
ECB’s Mario Draghi is first to hit the stage with a speech in Brussels at 3:00 pm GMT, followed by the RBA’s monetary policy meeting minutes tomorrow at 1:30 am GMT. Recall that in its last meeting minutes the RBA was still worried about Australia’s labor conditions.
Speeches by BOE Governor Carney tomorrow at 4:30 pm GMT and RBA Governor Stevens at 11:30 pm GMT will follow. These two are no strangers to jawboning. Stevens recently implied that they’d like to see AUD/USD closer to .8500 while Carney is known to give hints to different news reporters. In fact, Carney might even set the tone for the BOE meeting minutes scheduled on Wednesday at 10:30 am GMT!
If you’re only trading one central bank event this week, then you’re going to want to pick the FOMC statement on Wednesday at 8:00 pm GMT. The dollar has been rising aggressively in anticipation that the Fed would start to taper its asset purchases early next year. If the Fed turns out to be more cautious about tapering than we think, then we might see a broad USD selloff.
The last act belongs to the Bank of Japan as it releases its monetary policy decision on Friday. The central bank isn’t expected to make any changes but the yen could go back to weakening if the BOJ stresses its commitment to provide stimulus to the economy.
2. Data dump from major economies
Think the central bankers are the only ones that could move the major currencies? Not with these other red flags in sight! The euro zone doesn’t have a lot on deck aside from today’s PMI reports and some German numbers throughout the week.
The U.K. looks busy though, as it’s due to release its inflation numbers tomorrow, its employment numbers on Wednesday, retail sales report on Thursday, and current account and final GDP figures on Friday.
Comdoll traders don’t have to worry about lack of volatility especially when Canada is scheduled to print its manufacturing, retail sales, and inflation numbers while New Zealand is releasing its quarterly GDP figures. Last but not the least, Uncle Sam is joining the data party with the New York and Philly Fed manufacturing reports, building permits and home sales numbers, and the initial jobless claims on tap.