Aside from the final Presidential debate, dollar traders have a bunch of FOMC speeches to look forward to this week.
Will these catalysts provide one-directional trends for the Greenback?
Check out the market themes other dollar traders will likely pay attention to!
Lower-tier economic releases
- Building permits and housing starts (Oct 20, 12:30 pm GMT) are expected to show higher numbers than last month’s readings
- The beige book report (Oct 21, 6:00 pm GMT) last reported lower economic activity in September. Analysts see the release printing an even weaker picture with emphasis on employment rather than inflation
- Initial jobless claims (Oct 22, 12:30 pm GMT) expected to print at 860K (from 898K)
- Existing home sales (Oct 22, 2:00 pm GMT) to slip from 6.0M to 5.9M in September
- Markit’s manufacturing PMI (Oct 23, 1:45 pm GMT) could slow down from 53.2 to 52.6 in October
- Markit’s services PMI is also expected to weaken from its 54.6 reading
FOMC members’ speeches
- With no stimulus deal in sight, expect Fed members to sneak in calls for fiscal support in their speeches
- FOMC Chairman Powell (Oct 19, 12:00 pm GMT) will participate in a panel discussion about digital currencies
- Richard Clarida (Oct 19, 3:45 pm GMT) will talk economic outlook and economic policy
- Patrick Harker (Oct 19, 7:00 pm GMT) is scheduled to speak about recovery from the COVID-19 recession
- John Williams (Oct 20, 1:00 pm GMT) will open a webinar series hosted by the Reserve Bank of New York
- Randal Quarles (Oct 20, 2:50 pm GMT) will speak about the Financial Stability Board’s agenda
- Lael Brainard (Oct 21, 12:50 pm GMT) will talk economic and monetary policy outlook at an online conference
- Loretta Mester (Oct 21, 2:00 pm GMT) will talk monetary policy at a virtual conference
Overall dollar demand
- As seen in last week’s price action, prospects of a stimulus deal will continue to affect the demand for the dollar
- Headline-making policy goals and changes ahead of the U.S. election can also influence the dollar’s price action
- The final debate between President Trump and former VP Biden can also move equity markets and take dollar demand along with it
- Pre-election jitters can limit U.S. equity gains and send traders into the safe-haven dollar
Technical snapshot
- The dollar has gained value against ALL of its counterparts in the last seven days
- It saw the most gains against AUD, EUR, GBP, and CAD
- EMAs show the dollar’s short and long-term bearish trends against GBP, CHF, NZD, and JPY
- Watch out for retracement or reversal opportunities on EUR/USD
- AUD remains above the 200 SMA even as it dips below its shorter-term EMAs
- USD was most volatile against GBP, AUD, NZD, and EUR in the last seven days
This post first appeared on babypips.com
