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Weekly Outlook: November 12 - 16

11/12/2018, 11:36:22 AMBasics of Trading
Weekly Outlook: November 12 - 16

This week attention will shift to U.S. inflation data after the Federal Reserve indicated that it is still on course to hike interest rates in December.

Wednesday’s inflation data is expected to show that consumer prices rose in October. Investors will get another update on the health of U.S. consumers from Thursday’s retail sales numbers, which are expected to show an increase from the previous month.

Investors will also be watching a speech by Fed Chairman Jerome Powell in Dallas on Wednesday, where he is expected to discuss national and global economic issues, as well as appearances by a handful of other Fed speakers, including Vice Chair Randal Quarles.

Outside of the U.S., Brexit negotiations will remain in focus amid reports that the UK and European Union are edging closer to a draft deal. UK wage growth and inflation figures will also be closely watched.

The euro zone, Germany and Japan are to release preliminary data on third quarter growth. Meanwhile, Italy has until Tuesday to submit a new draft budget to Brussels, so the ongoing budget row between Brussels and Rome will likely remain in focus.

The dollar rose against a basket of the other major currencies on Friday, a day after the Fed indicated that rates are likely to rise again in December and beyond, with the U.S. economy looking strong on almost every front.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.2% to 96.74 in late trade, not far from the 16-month highs of 96.98 reached on October 31.

The euro was lower against the dollar late Friday, with EUR/USD down 0.25% to 1.1335.

The yen pushed higher against the greenback, with USD/JPY slipping 0.21% to 113.81.

Meanwhile, sterling was lower for a second day, with GBP/USD dropping 0.7% to a one-week low of 1.2970.

The fall in the pound came after Jo Johnson resigned as junior transport minister, adding to pressure on Prime Minister Theresa May over her Brexit plans.

Ahead of the coming week, has compiled a list of significant events likely to affect the markets.

Monday, November 12

Japan is to release data on producer prices and a preliminary report on machine tool orders.

San Francisco Fed President Mary Daly is to speak at an event in Idaho.

Tuesday, November 13

Australia is to publish data on business confidence.

The UK is to release its latest employment report.

The ZEW Institute is to report on German economic sentiment.

Fed Governor Lael Brainard is to speak at an event in Philadelphia.

Wednesday, November 14

Japan is to release preliminary data on third quarter growth.

China is to publish figures for fixed asset investment and industrial production.

The euro zone and Germany are to release preliminary data on third quarter growth.

The U.S. is to release data on consumer price inflation.

Fed Governor Randal Quarles is to speak in Washington.

Later in the day Fed Chairman Jerome Powell is to speak along with Dallas Fed President Robert Kaplan in Dallas.

Thursday, November 15

Australia is to publish its latest jobs report.

The UK is to report retail sales figures.

The U.S. is to release data on retail sales along with data on manufacturing activity in the New York and Philadelphia regions and the weekly report on initial jobless claims.

Fed Governor Randal Quarles is to speak in Washington.

Fed Chairman Jerome Powell is to speak in Dallas.

Friday, November 16

European Central Bank President Mario Draghi is to speak at an event in Frankfurt.

Canada is to round up the week with data on manufacturing sales and foreign securities purchases.