This week encloses two major policy meetings, the Bank of Canada and the European Central Bank as well as the publication of the Reserve Bank of Australia minutes and its Annual Report.
[B]Today [/B]the Canadian Federal election will take place to elect the 338 Parliament members, from which a government will be formed. Following China’s GDP growth was marginally lower and the retail sales than picked up, the German Buba monthly report will be published. In US, the NAHB housing market index for October is expected to show a stable growth in the sector of 62. During the night, Reserve Bank of Australia will release its last meeting minutes and a few hour later the RBA annual report.
Early on [B]Tuesday[/B], the German producer price index will be out. In Switzerland, the Trade Balance report will be out. Going to Eurozone the current account for August will be released. Across the Atlantic, the U.S. September’s figures for housing starts and building permits are scheduled to be published. Canadian wholesale sales in August are expected to come out. Overnight, the Australian CB leading economic indicator for August will be out as well as the Westpac leading index for September. In Japan, the all industry activity index will be eyed.
On [B]Wednesday [/B]morning, traders will watch closely the UK September’s public net sector net borrowing. Beyond that, the spotlight of the day is the Bank of Canada policy meeting. The central bank cut its benchmark interest rate twice in 2015, 25bp each time to 0.50%. In this meeting, no changes in the monetary policy are expected. Even though, I would expect the Canadian dollar to be affected from the press conference will follow. Overnight, the national Australia bank’s business confidence for Q2 will be out.
On [B]Thursday[/B], the UK retail sales for September are forecasted to have increased at the steepest pace than the month before. The ECB policy meeting will hog the limelight! Despite that the interest rate is not expected to change, all eyes will remain firmly focused on the policy statement and the press conference to draw whether the central bank will take actions to stimulate the economy and what are these actions. The ECB president repeated in the past that ECB is ready to adjust Quantitative Easing program if it is needed. Is the time for QE adjustments arrived?
Later in the day, the consumer confidence for October is forecasted to plunge in the negative territory more than the month before. The first estimate is expected to come out -7.5 from -7.1 before. In Canada, retail sales for August will be released. In US, the housing price index and the existing home sales change for September will come out, as well as an estimate for the CB leading indicators which is predicted to be 0.0% versus 0.1% before.
On [B]Friday [/B]morning, the preliminary October’s Markit services, manufacturing and composite PMIs for France, Germany and Eurozone are coming out. All of the economic indicators for Germany and Eurozone are expected to show a slowdown. Later in the day, the focus will turn into Canada that publish its September’s final inflation rate which is anticipated to attract considerable attention amid the CAD traders. The flash Markit manufacturing for October in U.S. is also coming out.