Market analysis

Economic announcements to watch in week 42: Key dates and trading assets

By Paul Reid

14 October 2024

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Monday, October 14, 2024, 09:00 GMT

The US Federal Reserve's Interest Rate Decision is set to be announced. This decision is closely watched by traders as it can significantly impact the US Dollar (USD), Treasury bonds, and stock markets. Analysts expect the Fed to maintain the current interest rate, but any hints of future rate hikes or cuts could cause volatility.

Assets to Watch:

  • USD pairs: The Fed’s rate decisions are pivotal for the US Dollar Index (DXY), which often reacts strongly. USD pairs like EURUSD, GBPUSD, and USDJPY may experience increased volatility. If the Fed hints at rate hikes, expect potential gains for the USD as higher rates can make the dollar more attractive to investors.
  • Gold (XAUUSD): Gold often moves inversely to the USD. Any indication of a pause or cut could drive XAUUSD higher as the dollar weakens, while a hawkish Fed stance may depress gold prices.
  • US Stock Indices: Benchmarks like the NASDAQ-100 and S&P 500 could dip with a hawkish outlook or rally if the Fed signals an easing, as lower rates make equities more attractive.

Tuesday, October 15, 2024

10:00 GMT The UK Consumer Price Index (CPI) for September will be released. This data is crucial for the British Pound (GBP) and UK government bonds. The previous month's CPI showed a 0.5% increase, and analysts are predicting a similar rise for September.

Assets to Watch:

  • GBP pairs: The CPI data is crucial for GBPUSD, EURGBP, and GBPJPY. A higher-than-expected CPI could prompt the Bank of England to adopt a more hawkish tone, strengthening the GBP. Conversely, a low reading could weaken it.
  • UK Government Bonds: Bond yields might increase with a higher CPI as inflation erodes returns, making them less attractive. Higher yields generally indicate a bearish bond market, influencing prices inversely.

Wednesday, October 16, 2024, 12:00 GMT

The European Central Bank (ECB) Monetary Policy Statement is due. This announcement can affect the Euro (EUR), European stocks, and bonds. The ECB has been signaling a cautious approach to monetary policy, and traders will be looking for any changes in tone or policy direction.

Assets to Watch:

  • EUR pairs: The ECB's cautious tone can affect EURUSD, EURJPY, and EURGBP. Any hint of policy tightening might boost the EUR, while a dovish stance could weaken it.
  • European Stocks: Major indices like DAX and CAC 40 could react to policy signals, especially if there are hints of prolonged accommodative measures, which typically benefit equities.

Thursday, October 17, 2024, 08:30 GMT

The US Initial Jobless Claims data for the week ending October 10 will be released. This report can influence the USD and US stock markets. The previous week's data showed a slight increase in jobless claims, and analysts are expecting a similar trend.

Assets to Watch:

  • USD pairs: The report can influence USD pairs such as USDCAD and AUDUSD. Higher-than-expected claims could weigh on the USD, as it may indicate a cooling labor market.
  • US Stock Indices: Indices like Dow Jones may react positively to higher claims, as they can ease pressure on the Fed to continue raising rates, boosting stock market sentiment.

Friday, October 18, 2024, 09:30 GMT

The China Trade Balance for September will be announced. This data can impact the Chinese Yuan (CNY) and commodities like iron ore and copper. The previous month's trade balance showed a surplus of $91.02 billion, and analysts are predicting a similar figure for September.

Assets to Watch:

  • CNY pairs and commodities: Trade data impacts USDCNH and commodities like Copper (XCUUSD) and Iron Ore, as China is a significant player in these markets. A strong trade balance could indicate robust demand for commodities, boosting prices. However, a weak report might depress commodity-linked currencies and assets.

Conclusion

Next week is packed with key economic announcements that could create significant market movements. Whenever you are unsure about market sentiment or coming price action, wait, reevaluate, and think critically. Only when all the signals inspire confidence should you commit to a trade. When in doubt, consider switching to a risk-free demo account to explore theories and strategies. This way, you still gain all the experience and lessons learned without risking your equity.

Traders should keep a close eye on these events and be prepared for potential volatility in the affected trading assets. To improve your reaction speeds and catch those timely entry points sooner, put a trading app on your phone and get real-time market updates wherever you are.


This is not investment advice. Past performance is not an indication of future results. Your capital is at risk, please trade responsibly.


Author:

Paul Reid

Paul Reid

Paul Reid is a financial journalist dedicated to uncovering hidden fundamental connections that can give traders an advantage. Focusing primarily on the stock market, Paul's instincts for identifying major company shifts is well established from following the financial markets for over a decade.