Key Economic Events and Reports for the Week Ahead
The Non-Farm Payrolls report was disappointing, but the Fed seems unrelenting in its quest to move towards a higher pace of QE roll-out. This is probably the main conclusion of this week, which should serve as a basis for next week trading expectations.
On Tuesday, the decision is made by the RBA, which could have a positive effect on the heavily oversold AUD and may allow a successful offensive for AUDUSD buyers to start. There are strong technical prerequisites for this.
On Wednesday, the Bank of Canada holds a meeting, which will also be urged to respond to the uncertainty surrounding the new covid strain. In case of a signal that the Central Bank may use monetary policy instruments to smooth out the increased risks of a pandemic, USDCAD may continue to move up after a good pullback this Friday at the NFP:
On Friday, pay attention to the UK GDP data in light of the upcoming meeting of the Bank of England and the US CPI for November. Accelerating inflation in the US will ensure a faster pace of curtailment of the Fed's asset purchases, to which the dollar will most likely not remain indifferent and will look for points to resume the rally.
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