Market News

Will they or won’t they? This is still the question being bandied about with regard to a Federal Reserve interest rate hike.

It is going to be an important week for 3 currencies: the USD, the NZD and the JPY. Get the economic and political calendar for the popular currencies for the week of October 26, 2015.

The dollar bounced back somewhat Friday as dovish signals from the European Central Bank and the rate cut by the People’s Bank of China lifted the US currency and rescuing it before it sank to its lowest price range.

Thursdays signal by ECB President Mario Draghi that the central bank is prepared to undertake another large stimulus package to tackle the lackluster growth seen in the euro zone advanced stocks on most global markets.

Commodity linked currencies continue to be the week’s biggest movers. The Canadian Dollar moved near to an 11-year trough against the greenback following the recent elections for Prime Minister and the lowering of growth forecasts by the Bank of Canada.

China’s slight recovery Thursday hasn’t done much to alleviate Asian investors’ worries. Asian Stocks came in with a mixed performance for the day with small-caps on the mainland attracting the strongest buying interest.

The recent rout in Asian equities negatively impacted growth currencies, including the Aussie and Kiwi Dollars.

Asian shares were mixed on Wednesday as investors remained cautious ahead of the European Central Bank's policy meeting later in the week. Export data was generally weak while Japan's markets was hoping to reach new highs for the month.

The Euro backed off its recent 10-day trough versus the US Dollar as FX traders ponder the latest less dovish words from ECB officials.

The low Australian dollar and ultra-low official interest rates seem to be helping Australia’s economy adjust to the end of the resources boom.

The Euro remained close to a 10-day trough versus the US Dollar as investors ponder a looming policy meeting for the European central Bank.

News out of China continues to fluctuate wildly. Reports out Monday showed that the GDP of world's second-biggest economy cooled less than expected. Other monthly indicators released in tandem with the GDP data hinted at enduring weakness in the economy.

It looks as if it is going to be a reasonably busy week ahead, although the focus will not fall on the USD but instead on the three currencies whose Central Banks are reporting this week: the Euro, the Canadian Dollar, and the Australian Dollar.

At the upcoming meeting of the European Central Bank on October 22 in Malta, Mario Draghi, the ECB president, is expected to signal further monetary easing by the central bank.

The Japanese economy remains on a course to stabilize its inflation. For the last few months, the Bank of Japan (BOJ) has been repeating its plan to continue QQE until the 2% inflation is stable and on Thursday, BOJ Kuroda reiterated this intention.