The US Federal Reserve will weigh this week’s Retail Sales and PPI data against last week’s lower-than-expected inflation figures as it determines whether to raise its benchmark interest rate by 50bps or 75bps at its December meeting.

Here are the highlights for the week ahead:

RBA Monetary Policy Meeting Minutes (15 November)

The Reserve Bank of Australia (RBA) increased its cash rate to 2.85% at its November meeting, the sixth consecutive increase.

RBA reiterated its commitment to bringing inflation back to target levels and stated that it would do everything in its power to accomplish it. The incoming data will affect the size and timing of rate hikes.

US Empire State Manufacturing Index (15 November)

October’s NY Empire State Manufacturing Index dropped 7.6 points to -9.1, a third consecutive month of negative growth.

Industry experts believe that business conditions will remain the same over the next six months. Meanwhile, this month, data is projected to decrease to -12 points.

US Producer Price Index (15 November)

US PPI for final demand rose 0.4% month-on-month in September 2022, reversing three consecutive months of decline.

Analysts expect that the index will increase by another 0.3% in October.

UK Consumer Price Index (16 November)

In September, the UK’s inflation rate rose to 10.1% from 9.9% in August, returning to 40-year highs seen in July.

According to analysts, they can foresee October’s annual CPI to be higher than 10.4%.

Canada Consumer Price Index (16 November)

According to the latest data, the Consumer Price Index in Canada increased by 0.10% in September 2022 over the previous month. 

Further increases are predicted for October.

US Retail Sales (16 November)

In September 2022, retail sales in the US held steady as high inflation and rising borrowing costs dampened consumer demand.

Retail sales are projected to increase by 0.8% in October.

Australia Employment Data (17 November)

Employment in Australia increased by 900 in September to a record high of 13.59 million. The unemployment rate held steady at 3.5%. Analysts expect employment to rise by 32,000 in October.

Analysts predict that employment will rise by 32,000 in October, and the unemployment rate will be 3.4%.

Dear Client,

Warmly reminds you that the component stocks in the stock index spot generate dividends. When dividends are distributed, VT Markets will make dividends and deductions for the clients who hold the trading products after the close of the day before the ex-dividend date.

Indices dividends will not be paid/charged as an inclusion along with the swap component. It will be executed separately through a balance statement directly to your trading account, the comment for which will be in the following format “Div & Product Name & Net Volume ”.

Please note the specific adjustments as follows:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact cs@vtmarkets.com.

VT Markets, a global multi-asset broker, has added a selection of 7 bond CFDs to its vast array of trade offerings and assets. This addition further enables traders to expand their portfolios and gain exposure to some of the most exciting markets in the world. 

Their new products feature bonds from countries such as the US and UK, among others. Some of the bonds being added to the award-winning trading platform include the US 10-year Treasury Bond Futures, UK Long Gilt Futures and Euro-Bund Futures. Clients of VT Markets will be able to trade these bond CFDs at competitive rates.

“This is an exciting opportunity for our clients. Bond CFDs are the perfect addition to any trader’s portfolio, as they can speculate the price movements and trade on margin without direct ownership of the instruments. This enables our clients to expand their trading options and get the most out of the markets. Bond CFDs are a welcome addition to our ever-growing range of products, which includes indices, stocks, commodities, and forex. We believe we are one of the most diverse brokers in today’s market,” said John Georgiou, Director of Business at VT Markets.

The new bond CFDs are now available for trading on the VT Markets mobile app and its robust trading platforms.

For more information, visit our website. 

About the Company:

VT Markets is a regulated multi-asset broker with a presence in over 160 countries. The broker has won many international accolades including Best Customer Service and Fastest Growing Broker. Their mission is to make trading an easy, accessible, and seamless experience for everyone.

Since the Federal Reserve announced its September rate decision, consumer price growth in the US has accelerated across a wide range of goods and services. This signifies that underlying inflationary pressures are growing stronger.

Fed officials will announce another rate hike in December, with analysts expecting the central bank to also increase interest rates further.

Here’s what to expect for the week ahead:

US Midterm Elections (November 8)

The US will hold its midterm elections on November 8.

Voters will go to the polls to decide who will hold key offices in their respective states and cities. The result of this election is expected to have a major impact on the US economy, and analysts are keeping close tabs on the situation.

US Consumer Price Index (November 10)

US CPI rose by 0.4% month-on-month in September, the highest reading in three months.

Analysts expect consumer prices to increase by a further 0.7%.

UK Gross Domestic Product (November 11)

UK economic growth slowed by 0.3% month-on-month in August after rising by 0.1% in July.

Analysts expect GDP growth to be 0.1% for September.

US Prelim UoM Consumer Sentiment (November 11)

The University of Michigan’s latest consumer sentiment survey in the US showed a reading of 59.9.

Economists forecast the index to come in at 60 for this month.

Dear Client,

Warmly reminds you that the component stocks in the stock index spot generate dividends. When dividends are distributed, VT Markets will make dividends and deductions for the clients who hold the trading products after the close of the day before the ex-dividend date.

Indices dividends will not be paid/charged as an inclusion along with the swap component. It will be executed separately through a balance statement directly to your trading account, the comment for which will be in the following format “Div & Product Name & Net Volume ”.

Please note the specific adjustments as follows:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact cs@vtmarkets.com.

The US Federal Reserve, Reserve Bank of Australia, and Bank of England have upcoming interest rate decisions scheduled throughout the week.

New Zealand and Canada will release their Employment Change data, while the US will release its Non-Farm Employment Change figures.

RBA Rate Statement – Australia (1 November)

The Reserve Bank of Australia (RBA) increased the cash rate by 25bps to 2.6% during its October meeting after hiking the benchmark interest rate by 50bps in each of the prior four months and 25 basis points in May.

RBA said that inflation in Australia was too high and that a further increase in prices is expected over the months ahead.

Analysts predict that the RBA will raise another 25bps at this month’s meeting.

ISM Manufacturing PMI – US (1 November)

The ISM Manufacturing PMI decreased in September to 50.9, reflecting the slowest growth in factory activity since 2020.

Based on historical trends, we expect that the index will rise to 51 for October.

Employment Data – New Zealand (2 November)

In the second quarter of 2022, New Zealand’s unemployment rate rose to 3.3% from 3.2% in the previous quarter. Employment data remained unchanged (0%). 

The unemployment rate for the third quarter of 2022 is forecast at 3.2%, with employment data to rise by 0.4%.

FOMC Statement and Fed Funds Rate – US (3 November)

Last month, the Federal Reserve boosted the federal funds rate by 75bps to 3%-3.25%. This increase is the third consecutive three-quarter point increase. 

Analysts expect the Fed to raise its target rate by another 75bps this month.

Bank of England Official Bank Rate and Monetary Policy – UK (3 November)

The Bank of England raised its key interest rate by 50bps to 2.25% in September, marking the 7th consecutive increase.

Analysts expect a further 75bps increase this month.

ISM Services PMI – US (3 November)

The Institute for Supply Management’s Services Purchasing Managers Index declined to 56.7 in September from 56.9 in August, but still above the historical average of 55.

Employment Data – Canada (4 November)

In September 2022, Canada added 21,100 jobs, the first rise in employment since May.

The unemployment rate in Canada declined to 5.2% in September of 2022 from 5.4% in the month before, showing a tight Canadian labour market. 

Analysts expect jobs to reduce by 5,000 in October as well.

Non-Farm Employment Change – US (4 November)

US average hourly earnings held steady at 0.3% in September, as employers added 263,000 jobs and the unemployment rate fell to 3.5%.

Analysts estimate that the average hourly earnings will remain at 0.3% for the month, and an additional 200,000 jobs will be created, with unemployment falling below 3.5%.

Dear Client,

Warmly reminds you that the component stocks in the stock index spot generate dividends. When dividends are distributed, VT Markets will make dividends and deductions for the clients who hold the trading products after the close of the day before the ex-dividend date.

Indices dividends will not be paid/charged as an inclusion along with the swap component. It will be executed separately through a balance statement directly to your trading account, the comment for which will be in the following format “Div & Product Name & Net Volume ”.

Please note the specific adjustments as follows:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact cs@vtmarkets.com.

This week, the Bank of Canada, the European Central Bank, and the Bank of Japan will announce their interest rate decisions, with expectations of possible rate hikes.

Meanwhile, the US is scheduled to release its Flash Services PMI, Advance GDP, and Core PCE Price Index. The UK and Eurozone will also be releasing their PMIs.

Australia will also release its Consumer Price Index, while Canada is expected to publish its Gross Domestic Product.

Flash Services and Manufacturing PMI – Eurozone, UK and US (24 October)

The Flash Services Purchasing Managers Index (PMI) for France may decline slightly to 51.9 from 52.9 in September, while analysts forecast that Germany will see a decrease in the Flash Services PMI from 45 to 44.8.

The UK’s Flash Services PMI is expected to remain at 50, while the US is forecast to rise from 49.3 to 50.

Germany’s manufacturing PMI for October is forecast to fall to 47 from 47.8 in September. The UK may see a rise to 48.4 from 47.5.

CB Consumer Confidence – US (25 October)

US consumer confidence in September 2022 rose to 108 from 103.6 the previous month. Data also showed that US consumers were optimistic about their finances and the economy in general. 

Analysts expect consumer confidence to slow down slightly over the next few months, but they predict it will remain above 100, indicating that US consumers are still feeling good about the economy.

Consumer Price Index – Australia (26 October)

The Consumer Price Index in Australia rose 1.8% in the 2nd quarter of 2022 over the previous quarter. Analysts forecast a slight dip in CPI for the 3rd quarter, between 1.1% and 1.5%.

Bank of Canada Rate Statement – Canada (26 October)

In September 2022, the Bank of Canada raised its target for its overnight rate by 75bps to 3.25%, saying that rates would need to rise further, given the inflation outlook. In its October meeting, policymakers forecasted that the Bank’s overnight rate would increase by another 50bps to 3.75%.

ECB Press Conference and Interest Rate Decision – Eurozone (27 October)

The European Central Bank raised its main interest rate by 75bps at its September meeting, signalling further hikes in the coming months. The market is already pricing a further 75bps increase in October to 2%.

Advance GDP – US (27 October)

The US economy shrank 0.6% in the second quarter of 2022, matching the second estimate. This confirms that a recession is underway. Economists expect an increase of 2% in the third quarter of 2022.

Bank of Japan Outlook Report – Japan (27 October – tentative)

The Bank of Japan maintained its key short-term interest rate at -0.1% in October and signalled that it would continue to raise rates in future meetings.

Although inflation in Japan is 2.5 to 3%, and the Yen is hitting its weakest level in more than 20 years, we still expect that the interest rate will remain unchanged at -0.1%.

Gross Domestic Product – Canada (28 October)

The gross domestic product (GDP) increased by 0.1% in July, matching the pace of growth in June. The GDP may be slower at 0% in August.

Core PCE Price Index m/m – US (28 October)

The Core PCE prices in the US, excluding food and energy, increased 0.6% in August from its previous month’s revised rate of 0.0%. The consensus estimate is for a 0.4% rise in September.

VT Markets, a regulated multi-asset broker, is determined to make its presence in the Middle Eastern market impactful and substantial amidst its global expansion plans.

Forex Expo Dubai 2022 is the largest trading event happening on 19-20 October at the World Trade Center, Dubai. The 2-day event brought industrial leaders, business partners, experts, and traders together to network and explore new opportunities in the ever-evolving Forex landscape. 

As the Gold Sponsor, VT Markets was excited to meet new partners and clients, and showcased its latest suite of products and services. The broker focused on promoting its partnership program for introducing brokers and affiliate partners.

John Georgiou, Director of Business at VT Markets, took the stage and presented his insights on “The tactics of global markets”. Georgiou shared his views on the financial markets for the quarter, key economic events, central banks’ monetary policy and inflation.

“We are seeing a growing client base in the Middle East. Forex Expo Dubai is one of the best places to reach out to more traders and exchange ideas with other leaders in the Forex industry. We are glad to be part of this expo and this event has inspired us to continue to lead the action and strive to provide more robust trading solutions for everyone,” said Georgiou.

For more information, please visit our website.

About the company:

VT Markets is a regulated multi-asset broker with a presence in over 160 countries. The broker has won multiple international accolades including Best Customer Service and Best Affiliate Program. They aim to make trading an easy, accessible, and seamless experience for everyone.

Dear Client,

Warmly reminds you that the component stocks in the stock index spot generate dividends. When dividends are distributed, VT Markets will make dividends and deductions for the clients who hold the trading products after the close of the day before the ex-dividend date.

Indices dividends will not be paid/charged as an inclusion along with the swap component. It will be executed separately through a balance statement directly to your trading account, the comment for which will be in the following format “Div & Product Name & Net Volume ”.

Please note the specific adjustments as follows:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact cs@vtmarkets.com.