Weekly FX Update – 23 October 2017 (Video)

In this weeks update, Senior Market Analyst Craig Erlam gives you a guide to the week ahead in the FX markets. While the week may not be packed with economic releases and central bankers hinting at upcoming policy changes, there’s no shortage of political events and earnings reports, while the ECB is also poised to announce the next step for its QE program.

One story that’s likely to remain in the headlines for much of the week is that of Catalonia independence. After weeks in which a lot has been said but little done, Madrid has moved to impose direct rule on Catalonia, who’s parliament has agreed to meet on Thursday to discuss its next step. It seems the situation is going to get a whole lot worse before it improves.

Japanese Prime Minister Shinzo Abe, along with the LDP’s coalition partners, secured a two thirds super majority in the lower house in elections over the weekend. The result is regarded by Abe and his colleagues as a fresh mandate for Abenomics and therefore suggests the period of ultra-loose monetary policy will continue.

The ECB monetary policy decision on Thursday is the week’s stand-out event, with the central bank poised to announce plans for its quantitative easing program beyond the end of the year. With a reduction already priced in, the question now is whether the ECB can deliver more than the market is pricing in? If not, is the market well position or poised for a correction?

Craig discusses all of this and much more and also gives his live analysis on EURUSD (13:17), GBPUSD (14:24), EURGBP (15:41), AUDUSD (17:11), USDCAD (18:46), GBPCAD (19:52), NZDUSD (21:10), USDJPY (22:39), GBPJPY (24:11) and EURJPY (25:10).

Gold Starts Week With A Whimper

Focus on Earnings as Fed Enters Blackout Period

Spain on Edge, EURO lower

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.