Following the prior week’s striking pressure in average hourly earnings, the week starts off slowly putting the focus on speeches from Federal Reserve FOMC Members. Neal Kashkari of the Minneapolis Fed and Rob Kaplan from Dallas speak on Tuesday. Charles Evans of Chicago follows on Wednesday, with Governor Jerome Powell, Eric Rosengren of Boston and Raphael Bostic later in the week. They are all known for their Dovish comments. Minutes from last month’s historic FOMC meeting will be Wednesday’s highlight though JOLTS Data in the morning may offer a strong reminder of tightness in the Labor Market.
UK Prime Minister Theresa May insists she is providing the ‘calm leadership’ the country needs, following an alleged plot to oust her from Downing Street. However, analysts are weighing how low the Sterling will still go, following political uncertainty. Sterling declined to four-week lows against the Dollar on Friday, amid growing uncertainty over UK Leadership and strong US Labour Market Data that boosted the Dollar.
The Wall Street Journal reports that the European Securities and Markets Authority has set out its plan of action for 2018, with a hike to staff levels and budget as it oversees an overhaul to the region’s trading landscape in view of Brexit. Euro recovered most of the earlier lost ground against the Dollar in the Wall Street Session on Friday as the Dollar tumbled on a report that North Korea is preparing to test a long-range missile, overturning earlier gains after the Government’s Jobs Report for September showed an unexpected rise in wages.
The Canadian Dollar advanced on Friday, recovering from a five-week low, after Domestic Data showed a pickup in wages and pointed to a tightening labor market. Canadian Wage Growth accelerated at its fastest pace in over a year in September, keeping alive the possibility that the Bank of Canada could hike interest rates for a third time by the end of the year.
Economic Data in the second half of the year has been largely upbeat, and Corporate Earnings are still solid, which has helped US Stocks and Indices climb even though Investors and Analysts express concerns about the length of the rally. The Dollar declined against the Yen on Friday as concerns by a Russian report that North Korea is preparing to test a long-range missile stoked demand for safe-haven Japanese Yen.
6:00 AM GMT German Industrial Production (MoM) (Aug)
9:45 PM GMT New Zealand Electronic Card Retail Sales (YoY) (Sep)
11:01 PM GMT UK BRC Retail Sales Monitor (YoY) (Sep)
11:50 PM GMT Japan Current Account n.s.a (Aug)
12:30 AM GMT Australia NAB Business Confidence (Sep) (Oct. 10)