Week Schedule

First up is the RBA (Reserve Bank of Australia), which is scheduled to release minutes from the board’s meeting in September. As global concerns weigh heavily on virtually all economies, many suspect the RBA may not only cease in raising interest rates, but some now anticipate at least one rate cut before the end of the year. It goes without saying that if the expectation of lower rates in Australia gets traction, selling pressure may follow the AUD currency lower.

The markets will then wait in high expectation as Center for European Economic Research releases the very important ZEW, which acts as a barometer as to Germany’s economic situation. This figure holds a special importance this month as many look to Germany as a source of strength which may be needed if additional European stimulus measures are enacted in order to prevent Greece from default. It will be very interesting to see what will be the result if a formal Greek bailout is created while the ZEW shows declining conditions in German.

In addition to Bank of England minutes, Canadian inflation figures and Retail Sales, and the New Zealand GDP, the FOMC will also meet in the scheduled Interest Rate Decision. Of course the worldwide expectation is that the Fed will not adjust rates. But more importantly we are reminded that during the Fed’s Jackson Hole, Wy. Symposium we were promised more detail as to the addition tools the Fed may employ to help stimulate the US economy and help bring it out of the dredges.

   

We can only hope that after dissecting this week’s economic data we will be able to better determine which economies hold the true value, which central banks are most and least likely to change their policies, and inevitably which trends will most likely develop in the near-term future. With that said, traders may not expect great periods of volatility to occur in the immediate future. However the market will take in and remember all this data, and ultimately wait for the proper catalyst to send currencies higher and lower, which in turn will create the next great currency (pair) trend.

    

I wish you the best of luck in all your trading endeavors.

By

M.Zohaib Gadit

Forex Trading Consultant