The USD Further Declined Against a Number of Competitors (Weekly Review)

Important events of the past week that could trigger a surge in volatility in financial markets include the Reserve Bank of Australia Meeting, the Fed Chair Jerome Powell's Speech, the FOMC Meeting Minutes Release, and ECB President Christine Lagarde's Speech. In addition to these events, market participants continue to follow the events around Brexit and the US presidential elections.

The RBA, as expected, left the interest rate unchanged. It caused no significant reaction, but the AUD closed the week with strengthening against the USD, which was facilitated by the growth of risk appetite among investors and positive signals from the Chinese economy. The weakness of the USD also had some influence, but sales of the Aussie on the rise are still possible.

Other events did not have a significant impact on the markets either. Despite the absence of a trade deal between the UK and the EU, the GBP closed the week with growth. Its strengthening was also facilitated by a decline in the USD due to a possible victory of Biden, while any negative influence at any time can trigger its sale, so bulls should not neglect protective orders.

Schedule for this week:

Monday, October 12
15:00 GMT - Eurozone. Vice-President of the European Central Bank Luis De Guindos Speaks;
16:00 GMT - United Kingdom. Bank of England Governor Bailey Speaks.

Tuesday, October 13
02:00 GMT - PRC. Trade Balance;
06:00 GMT - United Kingdom. Claimant Count Change;
06:00 GMT - United Kingdom. ILO Unemployment Rate;
06:00 GMT - Germany. Harmonised Index of Consumer Prices (HICP);
09:00 GMT - Eurozone. ZEW Economic Sentiment;
12:30 GMT - USA. Consumer Price Index (CPI);
12:30 GMT - USA. Core Consumer Price Index (CPI);
18:00 GMT - USA. Federal Budget Balance.

Wednesday, October 14
04:30 GMT - Japan. Industrial Production;
08:00 GMT - Eurozone. European Central Bank President Lagarde Speaks;
12:55 GMT - USA. Redbook Index.

Thursday, October 15
21:45 GMT - Australia. Reserve Bank of Australia Governor Lowe Speaks;
00:30 GMT - Australia. Employment Rate;
00:30 GMT - Australia. Unemployment Rate;
01:30 GMT - PRC. Consumer Price Index (CPI);
12:30 GMT - USA. Initial Jobless Claims.

Friday, October 16
01:00 GMT - USA. Presidential Debate;
09:00 GMT - Eurozone. Core Consumer Price Index (CPI);
09:00 GMT - Eurozone. Consumer Price Index (CPI);
12:30 GMT - USA. Retail Sales;
12:00 GMT - USA. Michigan Consumer Sentiment.

Author: Anthony Porter, IAFT Analyst