Welcome to a new week that marks the first half of November. This is an important period as we anticipate market fluctuations due to the upcoming U.S. elections and key economic releases, including the BoE decision and the Fed Rate decision.
What implications will this have for traders and investors? How will key assets like gold ($XAUUSD), the US Dollar, and indices such as $NAS100 and $US30 react? You can learn all about this in our upcoming release overview.
🇪🇺 S&P Global Manufacturing PMI — November 4, at 11:00 (GMT+2)
The first important release is the European PMI manufacturing index. Market forecasts suggest that the data may remain unchanged, similar to the previous release at 45.9. This means that it is unlikely to have a significant impact on $EURUSD and the $GERMAN30 index.
However, any deviation above or below expectations could trigger high volatility. Remember that this release signifies the health of the manufacturing sector and can provide insights into broader economic conditions in Europe, influencing market sentiment and trading strategies.
🇺🇸 ISM Non-Manufacturing PMI — November 5, at 17:00 (GMT+2)
The next release is expected from the U.S., which will determine the non-manufacturing PMI for October 2024. This is an important release as it is projected to come in lower than the previous figure of 54.9, with forecasts at 51.6. It's worth noting that a reading above 50 indicates expansion in the non-manufacturing sector, while a reading below 50 suggests contraction.
Therefore, traders and investors should exercise caution with open positions on Nasdaq, Dow Jones, and SP500 ($SPX500), as market reactions can be swift in response to this economic indicator.
🇪🇺 S&P Global Composite PMI — November 6, at 11:00 (GMT+2)
Next in the release schedule is the European Composite PMI, which typically impacts the $EURUSD quotes and the German DAX index. However, no surprises are anticipated here either, as the index is expected to remain at the previous level of 49.7. If it comes in lower than expected, it could negatively affect the euro and European equities.
Conversely, a disappointing figure could support safe-haven assets like gold ($XAUUSD) and the US Dollar, as investors may seek refuge in more stable investments during times of economic uncertainty.
🇬🇧 BoE Interest Rate Decision — November 7, at 14:00 (GMT+2)
On Thursday, we have two key releases for the week, the first of which is the Bank of England's interest rate decision. It's important to note that this release significantly impacts $GBPUSD as well as the British FTSE index. Last time, the Bank of England kept the rate unchanged at 5%. This time, opinions are divided: the rate may decrease by 0.25 basis points, or it may remain unchanged again. Therefore, traders should exercise caution and remain alert for potential market volatility surrounding this announcement.
🇺🇸 Fed Interest Rate Decision — November 7, at 21:00 (GMT+2)
The final key release of the week is the Federal Reserve's interest rate decision. Following its last meeting in September, where the Fed lowered interest rates by half a percentage point to a range of 4.75% to 5%, investors are anticipating another quarter-point cut at this meeting.
Market participants will also be closely watching Fed Chair Jerome Powell’s press conference, where he is expected to discuss the central bank’s economic analysis and outline the Fed's strategy for potential interest rate cuts in the coming quarters. It's worth noting that other Fed officials will be in a blackout period, preventing them from commenting on monetary policy.
That's it for this week! 👋
As this week brims with crucial economic data points, market participants should brace for potential swings and volatility.
IMPORTANT NOTICE: Any news, opinions, research, analyses, prices or other information contained in this article are provided as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and therefore, it is not subject to any prohibition on dealing ahead of dissemination. Past performance is not an indication of possible future performance. Any action you take upon the information in this article is strictly at your own risk, and we will not be liable for any losses and damages in connection with the use of this article.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
NAGA is a trademark of The NAGA Group AG, a German based FinTech company publicly listed on the Frankfurt Stock Exchange | WKN: A161NR | ISIN: DE000A161NR7.
The website is operated by NAGA Markets Europe LTD which is authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC) under licence No. 204/13. The registered address of NAGA Markets Europe LTD is Agias Zonis 11, Limassol 3027, Cyprus. Previous Domain: www.nagamarkets.com.
RISK WARNING: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Trading with NAGA Trader by following and/or copying or replicating the trades of other traders involves high levels of risks, even when following and/or copying or replicating the top-performing traders. Such risks include the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Before making an investment decision, you should rely on your own assessment of the person making the trading decisions and the terms of all the legal documentation.
Restricted regions: NAGA Markets Europe LTD offers services to residents within the European Economic Area, excluding Belgium. NAGA Markets Europe LTD does not provide investment and ancillary services in the territories of third countries.
Affiliate programs are not permitted in Spain for the investment service commercialisation or client acquisitions by unauthorised third parties.
Los programas de afiliados no están permitidos en España para la comercialización de servicios de inversión y captación de clientes por parte de terceros no autorizados.
RISK WARNING: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80.85% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.