What you need to know before markets open:

  • German coalition talks tumbled over the weekend with political elite seeking ways to reopen discussions while Merkel prefers new elections.
  • Fed’s chair Janet Yellen quits as a Fed governor promises a smooth transition to Jerome Powell.

Tuesday’s market moving events

  • The RBA minutes revealed “considerable uncertainty” on how quickly wages might pick up and add to inflation. The RBA expected GDP growth of around 3% over next few years, but subdued productivity.
  • The RBA Governor Philip Lowe is due to speak about recent developments in the Australian and global economy at the Australian Business Economists Annual Dinner, in Sydney at 09:05 GMT.
  • Central and Eastern European central bankers participate in a conference in Vienna, Austria.
  • The UK public sector net borrowing is expected to reach a surplus of GBP 6.6 billion in October.
  • The Bank of England Governor and several MPC members testify on inflation and the economic outlook before Parliament's Treasury Committee in London at 10:00 GMT.
  • UK Prime Minister Theresa May is meeting senior ministers to discuss Brexit bill offer.
  • Canada’s wholesale prices are expected to rise 0.6% m/m in September.
  • The US existing home sales are expected to rise 0.7% m/m in October to 5.43 million.
  • ECB Executive Board member Benoit Cœuré is chairing Policy Panel “Economic convergence: before or beyond fiscal union” at ECB Conference “Public debt, fiscal policy and EMU deepening” in Frankfurt, at 15:00 GMT.
  • The Fed chair Janet Yellen is due to due to participate in a panel discussion titled "In Conversation with Mervyn King" at the New York University Stern School of Business at 23:00 GMT.

Major forex market movers

  • The GBP/USD currency pair is approaching the key resistance line in a triangle breakout higher, watch Inflation report hearing and the Brexit bill news for impulses.
  • EUR/USD settled lower after a roller-coaster ride after German coalition collapse, economic prospects are increasingly bright before Wednesday’s activity data.  

Monday’s macro summary

  • German coalition talks collapsed with FPD walking away from the possibility of forming the government.
  • German PPI rose 2.7% y/y in October, down from September's 3.1% y/y.
  • German Bundesbank's monthly bulletin sees a current economic upswing to maintain the brisk pace of growth seen in the first six months of the year.
  • ECB President Mario Draghi opened his testimony at the European Parliament by saying “The economic expansion remains solid and broad-based across countries and sectors in the euro area, mainly supported by domestic demand.” As for the inflation pressures, Draghi said that those are still subdued as labor market slack remains significant and the ECB measures will preserve current financing conditions and ensure the ample degree of monetary stimulus that is still necessary.
  • German President Steinmeier will urge all political parties to return to the negotiating table and avoid a new election, calling the stalemate unprecedented in recent history.
  • Slovenian ECB Governing Council member Bostjan Jazbec said there is an urgent need to clean up NPLs in the banking system.
  • Merkel says she is ready for a new election after coalition talks collapse.
  • The Conference Board Leading Economic Index for the US increased 1.2% in October.
  • ECB's Draghi said that there is no risk for central banks from digital currencies currently, but they are a development that should receive interest from central banks and supervisor. 
  • Fed chair Yellen announces she will also leave the board of governors seat when successor Powell is sworn in.
  • The US President Trump declares North Korea state sponsor of terrorism and triggers sanctions.

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended Content


Recommended Content

Editors’ Picks

USD/JPY drops toward 142.00 ahead of BoJ policy decision

USD/JPY drops toward 142.00 ahead of BoJ policy decision

USD/JPY has turned south, approaching 142.00 in the Asian session on Friday. Markets turn risk-averse and flock to the safety in the Japanese Yen while the Fed-BoJ policy divergence and hot Japan's CPI data also support the Yen ahead of the BoJ policy verdict. 

USD/JPY News
AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood

AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood

AUD/USD attacks 0.6800 in Friday's Asian trading, extending its gradual retreat after the PBOC unexpectedly left mortgage lending rates unchanged in September. A cautious market mood also adds to the weight on the Aussie. Fedspeak eyed. 

AUD/USD News
Gold price treads water below record peak, awaits Fedspeak

Gold price treads water below record peak, awaits Fedspeak

Gold price hovers below the all-time peak touched earlier this week amid a bearish US Dollar and rising bets for more upcoming rate cuts by the Fed. Concerns over an economic downturn in China keep the safe-haven Gold price afloat. Fedspeak remains on tap. 

Gold News
Bank of Japan set to keep rates on hold after July’s hike shocked markets

Bank of Japan set to keep rates on hold after July’s hike shocked markets

The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session. 

Read more
XRP eyes gains as Ripple gears up for stablecoin launch, Grayscale XRP Trust notes rising NAV

XRP eyes gains as Ripple gears up for stablecoin launch, Grayscale XRP Trust notes rising NAV

Ripple (XRP) gained 2.3% since the start of the week. The altcoin’s gains are likely powered by key market movers that include Ripple USD (RUSD) stablecoin, Grayscale XRP Trust performance and the demand for the altcoin among institutional investors.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Majors

Cryptocurrencies

Signatures