{"id":97519,"date":"2016-10-31T06:33:52","date_gmt":"2016-10-31T10:33:52","guid":{"rendered":"http:\/\/countingpips.com\/?p=97519"},"modified":"2016-10-31T06:33:52","modified_gmt":"2016-10-31T10:33:52","slug":"week-ahead-central-banks-meetings-u-s-nfp-more-earnings","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/10\/week-ahead-central-banks-meetings-u-s-nfp-more-earnings\/","title":{"rendered":"Week Ahead: Central Banks meetings, U.S. NFP, more earnings"},"content":{"rendered":"
October 31, 2016<\/div>
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Article by ForexTime<\/a><\/p>\n

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After the U.S. and U.K. economies showed better than expected growth in the third quarter, investors turn their attention to monetary policy actions. Four major central banks will meet the coming week (Fed, BoE, BoJ, and RBA), and while most of them remaining accommodative or planning to ease further, only the Federal Reserve is set to swim against the tide. Here\u2019s what to watch the week ahead:<\/p>\n

The Fed to send a clear message<\/strong><\/p>\n

With 9 days remaining to the U.S. presidential election, the Fed is expected to keep markets calm and stand pat on rates when they announce policy on Wednesday. The two-day meeting will most likely set the tone for December where markets are pricing more than 70% chance for a hike.<\/p>\n

Latest round of economic releases supports the idea of tightening policy with growth bouncing back from a weak first half in 2016, jobs added to the economy averaging at 191,000 in the last three months, and more Americans buying new homes. The improvement in data will likely keep the dissenters from October\u2019s decision in favor of hiking, but I think it\u2019s very unlikely for other members to join.<\/p>\n

I believe the statement that follows the meeting will indicate a clear signal that a rate hike in December is coming, similarly to what we saw in October 2015 when the Fed stated \u201cIn determining whether it will be appropriate to raise the target range at its next meeting<\/u>, the Committee will assess progress both realized and expected toward its objectives of maximum employment and 2 percent inflation.\u201d<\/p>\n

Another strong jobs report to support Fed\u2019s view<\/strong><\/p>\n

Several U.S. economic reports are due next week including personal consumption expenditure, ISM manufacturing and non-manufacturing, factory orders and trade balance, but Friday\u2019s jobs report will have the most significant impact on markets. The economy is expected to add 175,000 jobs in October versus 156,000 in September, and unemployment to tick down to 4.9% from 5%. Wages are no less important with average hourly earnings expected to climb to 2.6% from a year ago suggesting that inflation will return sooner than later.<\/p>\n

Earning season remains in full swing<\/strong><\/p>\n

Earnings season will continue with heavyweight companies to announce results including Facebook, Alibaba, Starbucks, Pfizer, Time Warner, Qualcomm, and Warren Buffett\u2019s Berkshire Hathaway. So far 74% of S&P 500 companies managed to beat profit estimates while 58% beat on revenues, and it became clear that U.S. companies are out of profit recession which lasted 5 quarters with earning growth for S&P now standing at 1.6% according to Factset.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

Disclaimer: <\/strong>The content in this article comprises personal opinions and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/em><\/p>\n

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Article by ForexTime After the U.S. and U.K. economies showed better than expected growth in the third quarter, investors turn their attention to monetary policy actions. Four major central banks will meet the coming week (Fed, BoE, BoJ, and RBA), and while most of them remaining accommodative or planning to ease further, only the Federal […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-97519","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/97519","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=97519"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/97519\/revisions"}],"predecessor-version":[{"id":97535,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/97519\/revisions\/97535"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=97519"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=97519"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=97519"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}