Big week ahead for commodities with Fed, OPEC+ and NFP in focus – What’s next? [Video]
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November kicks off with a series of high-impact events that traders will not want to miss out on including; two major central bank monetary policy meetings, a critical OPEC+ output decision as well as the latest U.S employment figures.
After having more than doubled the size of its balance sheet to $8.5 trillion since the start of the pandemic, it could now be time for the U.S Federal Reserve to start slowing down its monthly asset purchases.
That announcement could come as early as this week, when Fed officials conclude their monetary policy meeting on 3 November.
Expectations are also running high that The Bank of England will follow in the Fed's footsteps with an interest rate hike announcement on 4 November, as the UK economy battles inflationary pressures that have proved more persistent than previously anticipated.
Elsewhere this week, all eyes will be on OPEC and its allies as they meet on 4 November to decide whether or not to raise Oil output.
As rapidly soaring inflation pushes some central banks toward earlier-than-expected tapering, the U.S. Japan and India have put strong diplomatic pressure on the cartel to lower Oil prices by increasing its supply to the global market.
So far, OPEC and its allies have firmly resisted these pressures, which in turn has sent Oil prices skyrocketing above $50 a barrel, then $75 and now to more than $85 a barrel for the first time in seven-years.
Also on the radar this week will be the closely watched U.S jobs report for October, due for release on Friday. Traders will be paying huge attention to Friday’s data, especially as the previous Non-Farm Payroll reports have missed expectations for two consecutive months in a row.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
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