Is it just me or are central bankers, not economic data, dictating price action these days? Here are a couple of central bank events that could get you pips this week!
1. RBA meeting minutes
When: Tuesday, 1:30 am GMT
Why is it important?
In its last policy statement the Reserve Bank of Australia (RBA) decided to keep its rates steady at 2.50% and noted that the Aussie is “uncomfortably high.” Not only that, but the RBA also stated that the below-trend growth rate is likely to continue in the foreseeable future. Will the RBA make the same dovish remarks and put a cap on the Aussie’s strength this week?
In its last policy statement the Reserve Bank of Australia (RBA) decided to keep its rates steady at 2.50% and noted that the Aussie is “uncomfortably high.” Not only that, but the RBA also stated that the below-trend growth rate is likely to continue in the foreseeable future. Will the RBA make the same dovish remarks and put a cap on the Aussie’s strength this week?
2. MPC monetary policy votes
When: Wednesday, 10:30 am GMT
Why is it important?
A few days ago the Bank of England’s Monetary Policy Committee (MPC) voted to keep both its interest rates and asset purchases steady at 0.50% and 375 billion GBP respectively. Mark Carney also energized the pound bulls when he admitted that the economy’s recovery will continue and that unemployment is dropping faster than the BOE’s early estimates. Will these factors be enough to get another 0-0-9 sweep from the MPC members?
A few days ago the Bank of England’s Monetary Policy Committee (MPC) voted to keep both its interest rates and asset purchases steady at 0.50% and 375 billion GBP respectively. Mark Carney also energized the pound bulls when he admitted that the economy’s recovery will continue and that unemployment is dropping faster than the BOE’s early estimates. Will these factors be enough to get another 0-0-9 sweep from the MPC members?
3. FOMC meeting minutes
When: Wednesday, 8:00 pm GMT
Why is it important?
The dollar bulls partied in the streets at the start of the month when the FOMC statement didn’t turn out to be as dovish as many had originally thought. Unfortunately, Janet Yellen rained on their parade last week. If the meeting minutes shows that there are more members favoring tapering in the near future, then we might see the Greenback bring sexy back.
The dollar bulls partied in the streets at the start of the month when the FOMC statement didn’t turn out to be as dovish as many had originally thought. Unfortunately, Janet Yellen rained on their parade last week. If the meeting minutes shows that there are more members favoring tapering in the near future, then we might see the Greenback bring sexy back.
4. BOC Governor Poloz speech
When: Wednesday, 10:15 pm GMT
Why is it important?
With the RBA saying that the Aussie is “uncomfortably high” and the RBNZ hinting at a rate hike next year, traders will be looking at Bank of Canada (BOC) Governor Stephen Poloz to see if he will once again try to talk down the Loonie by reminding us of their low growth and inflation forecasts. Will his statements stick to the investors’ minds as the other comdoll-related central bankers have?
With the RBA saying that the Aussie is “uncomfortably high” and the RBNZ hinting at a rate hike next year, traders will be looking at Bank of Canada (BOC) Governor Stephen Poloz to see if he will once again try to talk down the Loonie by reminding us of their low growth and inflation forecasts. Will his statements stick to the investors’ minds as the other comdoll-related central bankers have?
5. BOJ monetary policy decision
When: November 21, some time in the Asian session
Why is it important?
No one is expecting changes from the Bank of Japan (BOJ) especially now that the yen pairs have staged upside breakouts. Still, we’ll probably see some statements about the BOJ’s commitment to stick to its plans as well as hints of further action from the central bank.
No one is expecting changes from the Bank of Japan (BOJ) especially now that the yen pairs have staged upside breakouts. Still, we’ll probably see some statements about the BOJ’s commitment to stick to its plans as well as hints of further action from the central bank.
There you have it, folks! At least five reasons not to skip out on trading this week! I hope you prepare well and take any advantage that you could find!
Good luck and good trading!
(C) BabyPips
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