This week, all eyes are on key economic events scheduled for October 21-25.
The BoC’s Interest Rate Decision on October 23 will be pivotal, with markets anticipating policy signals. The U.S. Existing Home Sales report earlier that day will provide insight into the housing market.
On October 24, the Eurozone’s S&P Global Composite PMI will offer a snapshot of economic activity, while October 25 brings Canada’s Core Retail Sales m/m and the U.S. Core Durable Goods Orders m/m.
Buckle up for a pivotal week that could set the tone for the rest of the quarter!
🇨🇦 BoC Interest Rate Decision — October 23, at 17:45 GMT+3
Kicking off the week, this is the first major release that traders will be watching closely. The Bank of Canada is expected to deliver a 50 basis points rate cut, aiming to boost economic growth. With the central bank having already lowered its key interest rate three times, bringing it down to 4.25%, markets anticipate further action to stimulate the economy.
The USD/CAD has moved above 1.3800 in anticipation of this cut, indicating that traders are positioning themselves for a potential impact on the currency pair as the decision unfolds.
🇺🇸 Existing Home Sales — October 23, at 17:00 GMT+3
This release covers the volume and pricing trends for existing single-family homes, condos, and co-ops across the U.S., which make up over 90% of the country’s total home sales. The report is a critical barometer for the health of the housing market, providing valuable insights into broader economic activity.
Given its impact, the data could influence the U.S. Dollar’s movement and affect major indices like the Dow Jones, Nasdaq, and S&P 500, as traders react to the state of consumer demand and economic stability.
🇪🇺 S&P Global Composite PMI — October 24, at 11:00 GMT+3
This key release is projected to drop to 47.1 from the previous 49.6, signaling potential contraction in the Eurozone’s economic activity. The report will be closely watched as it provides insight into the overall health of the region’s economy, influencing market sentiment.
Traders are likely to focus on the EUR/USD pair, as weaker-than-expected data could put pressure on the Euro, leading to potential volatility in the currency markets.
🇨🇦 Core Retail Sales m/m — October 25, at 15:30 GMT+3
This report, expected to show a decline of -0.3%, contrasts with the previous month’s 0.4% gain. It measures changes in the value of retail sales, excluding automobiles, offering insight into consumer spending trends.
A weaker-than-expected result could indicate slowing economic activity, which may put pressure on the Canadian Dollar. This release is likely to impact the USD/CAD pair, as traders evaluate the economic outlook and adjust their positions based on the divergence between U.S. and Canadian retail trends.
🇺🇸 Core Durable Goods Orders m/m — October 25, at 15:30 GMT+3
As the final economic release of the week, this report is forecasted to show a 0.5% increase, matching the previous month’s figure. It measures new orders for durable goods like vehicles, machinery, and electronics — key indicators of manufacturing activity and economic strength.
A consistent or improved result could signal stability and confidence in business investment, potentially boosting stock markets like the Dow Jones, Nasdaq, and S&P 500, while also supporting the U.S. Dollar. Conversely, any deviation from the forecast may stir volatility across these markets as investors adjust their expectations.
That's it for this week! 👋
