Week Ahead – US and UK Inflation Data to Take Center Stage

After taking a strong hit last Friday due to the disappointing US employment report, the dollar staged a shy recovery this week as several Fed officials noted that the stellar performance of the US economy keeps the door open to further rate increases. Just on Thursday, Fed Chair Powell said that they “are not confident” that interest rates are high enough to signal the end of their fight against inflation.

Weekly Economic & Financial Commentary: Long and Variable Lags Evident in Credit Availability

Ben Franklin famously said, “If you would know the value of money, try to borrow some.” Amid a light calendar for economic data, we focus this week on how lenders tightened standards for most loan types in Q3 even as demand for loans weakened, according to the Federal Reserve's Senior Loan Officer Opinion Survey (SLOOS).

Forex and Cryptocurrencies Forecast

The past week witnessed few significant events, which reflected in EUR/USD pair's fluctuations around 1.0700. Notably, there was a slight increase in the Dollar Index (DXY), starting at 105.05 and reaching a peak of 105.97 by Friday, November 10. This growth was primarily attributed to the "hawkish" comments made by the Chair of the Federal Reserve.

Struggling Aussie Faces Huge Data Week

The Aussie dollar fell every day last week, losing about 1.5 cents despite the RBA rate hike. A resilient US dollar kept a lid on A$, adding to the focus on US CPI data this week. There will also be key Australian data, including Q3 wages and October employment.

All Eyes on US Inflation and the Government's Funding Deadline

What everyone – most investors, every household and every politician want to see and to sense right now is the end of the global monetary policy tightening cycle, and the beginning of the end starts mostly with the Federal Reserve (Fed).

Moody's Downgrades US Outlook from Stable to Negative

Asian news flow is thin but Moody’s downgrading the US outlook from stable to negative (with unchanged AAA rating) grabs some attention. Moody’s said risks to fiscal strength have increased and might no longer be offset by the countries credit strengths. Fiscal deficits are expected to remain very large while continued political polarization in Congress raised the risk that governments won’t be able to reach consensus on plans to slow the decline in debt affordability.

Bank of England Initiates Stress Test In Aftermath of Liz Truss Budget Disaster

In a groundbreaking move, the Bank of England has called upon more than 50 financial institutions in the City to conduct a comprehensive stress test, simulating the repercussions of a sudden and drastic movement in bond prices. This initiative marks the first financial system-wide stress test of its kind, reflecting the central bank's proactive stance in assessing and fortifying the resilience of the financial sector.

Aussie Ends Nasty Slide, Confidence Data Next

Australia will release consumer and business confidence data on Tuesday. Consumers remain deeply pessimistic, although the Westpac Consumer Sentiment index climbed 2.9% in October to 82, its highest level in six months. The 100 level separates pessimism from optimism. Consumers have been squeezed by stubbornly high inflation and elevated interest rates. The market consensus for November is 0.7%, which would raise the index slightly to 82.6.

GBP/USD Calm ahead of UK Job Report

The British pound has edged higher on Monday. In the European session, GBP/USD is trading at 122.48, up 0.18%. The pound is coming off a nasty week, in which it declined 1.2%.

Traders Eye Inflation Reports, OPEC Pushes Back

It's been a relatively uneventful start to the week but the next couple of days could be hugely important as the US and UK release inflation figures for October.