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The U.S. dollar will be under the spotlight again this week as the Fed prints its meeting minutes and traders keep their eyes peeled for developments on the U.S. elections.

Planning on trading the dollar this week?

Here are some of the catalysts that you should pay attention to:

FOMC meeting minutes

  • Fed Chairman Powell (Oct 6, 2:40 pm GMT) will talk economic outlook at the National Association of Business Economics annual meeting
  • The Federal Open Market Committee (FOMC) will then print its meeting minutes on Oct 7, 6:00 pm GMT)
  • In its last decision, the Fed shared its willingness to tolerate a faster (than 2%) inflation in favor of stimulating growth

More labor-related reports

  • The employment component of ISM’s services PMI (Oct 5, 2:00 pm GMT) is expected to improve from 47.9 to 49.0 in September
  • JOLTS job openings (Oct 6, 2:40 pm GMT) could dip from 6.62M to 6.5M in August
  • Initial jobless claims (Oct 8, 12:30 pm GMT) expected at 840K and mark the sixth week of staying around 800K

Overall dollar demand

  • Trump’s health will continue to take center stage as traders speculate on the immediate future of the world’s largest economy
  • VP candidates Mike Pence and Kamala Harris will face off on October 7, 2020, at the University of Utah in Salt Lake City
  • Progress on the latest stimulus package could encourage risk-taking (and dollar-selling?) in the markets
  • Pelosi recently shared that they’re “making progress” and that airlines should hold off from firing as “relief is on the way”

Technical snapshot

  • Williams %R is flagging the dollar’s “oversold” conditions against the pound
  • USD/JPY may be “overbought” on the daily time frame
USD Forex Pairs Williams%R from MarketMilk
USD Forex Pairs Williams%R from MarketMilk
  • SMAs reflect the short-term bearish pressure on the dollar across the board
  • USD remains under the 200 SMA against all of its major counterparts
  • Look out for retracement or reversal opportunities on USD/JPY
USD Forex Pairs SMAs from MarketMilk
USD Forex Pairs SMAs from MarketMilk
  • USD was most volatile against GBP, AUD, NZD, and CHF in the last seven days
USD Forex Pairs Volatility from MarketMilk
USD Forex Pairs Volatility from MarketMilk

Missed last week’s price action? Read USD’s price recap for Sept 28 – Oct 2!