Weekly Trading Update

Dominated mainly by US Fed and PPI/CPI updates early week



Both the head of the Fed and the Bank of England are due to make speeches this week, alongside both CPI and PPI data being released in the US also.

US

Early on during the week, we are expecting speeches from Fed chair Jerome Powell. On Monday at 3:30pm he is set to discuss “How Gender Influences Economic and Financial Outcomes Over An Individual's Lifetime”.

Then on the Tuesday he is due to talk at a meeting jointly hosted by the Fed, Bank of England, Bank of Canada, and European Central Bank.

Will either of these speeches give investors any indication on where the interest rate may be heading or add to news on the Tapering announced on 3rd November, which boosted US markets and strengthened the Dollar?

Additionally, both the PPI and CPI rates are due to be released on Tuesday and Wednesday respectively. Will we see another figure surprisingly lower than forecast as we did in October when PPI dropped to 0.5%, even with forecasts set for it to stay the same at 0.5%?

CPI on the other hand was better than forecast last month, up to 0.4%. Could we see similar rates for the indicator heavily related to inflation, which has been all over the news recently?

These announcements/speeches are undoubtedly going to affect not only the main US indices but also major currencies pairs, so its will be a week to keep your eyes fixed on these dates to take advantage.

UK

A slightly quieter week for the UK as it will mainly look towards the aforementioned meeting of central banks including the Bank of England on Tuesday. Just like Powell, Andrew Bailey is due to speak. There could be further indicators as to the BoE view on when they will inevitably raise the interest rates. The UK markets responded positively to the news announced on 4th November, that despite what most were expecting, interest rates were going to be held at 0.1%.

Rest of the World

As for the rest of the world, it is looking to be relatively quiet, with the EU looking towards data being released on economic sentiment, which could give early indications on where the European economies are heading.

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