Week Ahead – Fed minutes and inflation in focus

A busy week in store

Another fascinating week in the markets and there’s little reason to think there isn’t plenty more to come in the final months of the year. Russian President Vladimir Putin calmed investor nerves this week, reassuring everyone that the country stands ready to stabilise the energy market just as the situation was getting out of control. Of course, that would be far easier if the controversial Nord Stream 2 pipeline’s approval was accelerated. Over to you, Germany.

The debt ceiling threat has been pushed back to December, alleviating mild concerns that lawmakers on both sides may not blink until it’s too late. All eyes remain on Washington though, as we wait to see whether President Biden will renominate Fed Chair Jerome Powell, just as the central bank prepares to taper its pandemic asset purchase program in November following a good enough September jobs report.

Evergrande may have taken a step back from the headlines but the company’s problems are far from over. Missed debt payments won’t be tolerated for much longer and investors will increasingly demand answers. We’re already seeing contagion as other developers miss payments and the situation will get far worse if something doesn’t change very soon.

Fed minutes and inflation data eyed on Wednesday

How much longer does CBRT Governor Sahap Kavcioglu have?

Japanese Prime Minister Fumio Kishida sets election date



A weak payrolls report will not derail the Fed, and now markets can fully expect a formal taper announcement at the November 3rd FOMC meeting.  Congress has also punted on making any hard decisions over the debt ceiling, infrastructure, and spending, so the focus on Wall Street will primarily fall on inflation.  The September inflation report is expected to show pricing pressures remain elevated, but any hotter-than-expected readings could unnerve some investors. 

Many traders are closely watching to see what President Biden does regarding renominating Fed Chair Powell.  A decision could happen on or before October 13th, when Randal K. Quarles, Vice Chair for Supervision term expires.  What has complicated Powell’s potential renomination has been the Fed trading scandal that impacted two presidents of Fed reserve banks and Fed Vice Chair Richard Clarida.

The upcoming week is filled with economic data releases and Fed speak.  Many investors will pay close attention to the more dovish members, Evans and Brainard, to see if they are changing their tune about inflation being transitory.   On Monday, Fed’s Evans gives introductory remarks at an award ceremony.  On Tuesday, the NFIB Small Business Optimism report is expected to show some weakness, JOLTS job openings could remain near the 10.9 million level, and Fed’s Bostic will speak on inflation at the Peterson Institute. 

Wednesday is the most important day of the week as Wall Street will closely follow the September US inflation report, the release of FOMC minutes, and what Fed’s Brainard says at the Fed Listen Event.  Thursday contains the release of the weekly jobless claim, September PPI and is filled with Fed speak from Bostic, Logan, Barkin and Harker.  Friday is the second most important day of the week as traders will follow the release of September retail sales, which should show the consumer is weakening.  The Empire manufacturing report, the first regional index for October, is expected to show manufacturing activity slowed, but the primary focus for some might be the comments about supply chain issues.  Fed’s Williams will also participate in a monetary policy panel.  


A quiet week ahead for the EU, with data releases primarily made up of tier two and three releases. The only exception being the ZEW economic sentiment figures on Tuesday. 


A scattering of economic data throughout the week to come, starting with NIESR GDP estimate on Monday, labour market figures on Tuesday and the official monthly GDP data on Wednesday. Tier two and three releases will also be released throughout the week.

Markets continue to price in three rate hikes by the end of next year, with the first potentially by this December.

Emerging Markets


Russia has positioned itself right at the centre of the energy crisis, with President Vladimir Putin claiming they’re ready to stabilise the market. It seems what will help with this is the approval of the politically divisive Nord Stream 2 pipeline which will enable more supplies. How fortunate. No data of note next week.

South Africa

Another quiet week on the data side, with business confidence index on Monday, manufacturing production index on Tuesday and retail sales on Wednesday. 


Rumours surfaced today that President Erdogan is losing patience with CBRT Governor Sahap Kavcioglu, just seven months after taking charge at the central bank. It would appear the Governor is on borrowed time if both his boss and the markets have lost faith in him. 

With the lira trading at record lows, crossing your fingers and hoping inflation falls as you cut rates is unlikely to end well. Especially if you’re seemingly doing it to appease a President that is reportedly frustrated at it taking so long for the loosening process to begin. We may be about to see the fourth Governor sacking in a little over two and a half years.

Asia Pacific


China has another short week ahead, with Friday being a holiday. The data calendar is light with the highlight being inflation on Thursday which is expected to rise by 0.90% YoY. 

China’s energy shortages are grabbing the headlines with the government instructing state energy companies to secure supplies at any cost. That will keep energy prices supported, but any signs that the situation is worsening may again lead to selling on the main indexes. 

President Xi makes a speech on Taiwan this weekend, and depending on the contents, could see some volatility in regional markets on Monday.

Evergrande has slipped from the headlines this past week, but with another China developer defaulting on a foreign debt this week, markets are not far away from sparking another sell-off in Mainland and Hong Kong equity markets.


The RBI has left policy rates unchanged, saying that it remains accommodative. That has been despite inflation far outstripping policy settings leading to a stagflationary environment. The Indian Rupee has been under pressure for the past week. INR has immediately sold off after the RBI decision and may test 75.00, even 75.40.

Stagflationary fears could increase with the release of Industrial Production and WPI  on Tuesday and Friday.

With energy prices remaining elevated, particularly coal and natural gas, the pressure will come on India’s current account as a massive net importer of energy. That might explain why the fizz has gone out of India’s stock market over the past week. 

Australia & New Zealand

Data-wise, New Zealand releases Electronic Retail Spending on Monday, while Australia releases Consumer Confidence and Employment on Thursday which usually generates some intra-day volatility.

The RBNZ raised policy rates as expected but  NZD/USD remains acutely vulnerable to the delta-variant which is now spreading outside Auckland to adjacent provinces. A deterioration over the weekend could see NZD/USD marked sharply lower on Monday’s open.


New Prime Minister Kishida has set a 31st October election and has promised cash payments to citizens affected by the virus and also a new supplementary budget (read fiscal goodie bag) after the election. Japan has a heavy data schedule including PPI, Reuters Tankan, Machinery Orders and Industrial Production. The overall tone is closely tied to US markets right now, so the data will only be useful for intra-session volatility.

Japan equities are maintaining a high correlation to Wall Street this week. Fiscal stimulus announcements are also providing support. USD/JPY has risen to near 112.00 as the US Dollar prices in the Fed taper and US yield remain firm. 

Key Economic Events

Saturday, Oct. 9

Czech Republic elections: Prime Minister Babis expected to win a second term.

German Chancellor Merkel starts her delayed three-day visit to Israel.

Danish Prime Minister Frederiksen begins three-day visit to India  

North Korea marks the anniversary of its ruling Workers’ Party of Korea.

Economic Data/Events

China aggregate financing, money supply, new yuan loans

Sunday, Oct. 10

Taiwan President Ing-wen gives annual address  

Economic Data/Events

New Zealand home sales

China FDI

Monday, Oct. 11

US and Canada Bond markets will be closed for the Columbus Day holiday and Canada’s Thanksgiving Day.

IMF/World Bank annual meetings begin

Fed’s Evans speaks at the Lawrence R. Klein Award virtual ceremony.

Czech politics in focus: Babis to begin coalition negotiations.  

Economic Data/Events

Italy industrial production

Japan machine tool orders

Turkey current account

UK industrial production

South Africa business confidence

Czech Republic CPI

Norway CPI

Denmark CPI

Russia current account

Tuesday, Oct. 12

IMF releases World Economic Outlook and Global Financial Stability Report.

Atlanta Fed President Bostic speaks on inflation to the Peterson Institute for International Economics in Washington.

The Singapore Defense Technology Summit

The EU-Ukraine summit 

The G-20 trade ministers meet in Sorrento, Italy.

Google Cloud Next conference

Economic Data/Events

Australia NAB business conditions, consumer confidence

Germany ZEW survey expectations

India trade, industrial production, CPI

Japan PPI

Mexico international reserves, industrial production

New Zealand ANZ Truckometer Heavy, net migration, card spending

Russia trade

South Africa manufacturing production

Turkey industrial production

UK jobless claims, unemployment

Wednesday, Oct. 13

IMF Managing Director Georgieva and COP26 President Sharma speak during the IMF and World Bank annual meetings.

The G-20 finance ministers and central bank governors meet in Washington.

The Russian Energy Week conference begins

Federal Reserve Vice Chair Randal Quarles’s term expires.

President Biden could decide on renominating Fed Chair Powell

Economic Data/Events

US FOMC minutes, CPI

JP Morgan reports third quarter earnings

Australia Westpac consumer confidence

New Zealand food prices, ANZ activity outlook

China trade, medium-term lending facilities

Japan machinery orders, M2 money stock

Eurozone industrial production

Germany CPI

South Africa retail sales

Russia CPI

UK industrial, manufacturing production, trade

Thursday, Oct. 14

Reserve Bank of Australia Deputy Governor Debelle speaks at two-day CFA Australian Investment Conference

FDA meeting over Moderna and Pfizer booster Covid shots

Japan’s new Prime Minister Fumio Kishida to dissolve parliament ahead of expected October 31st national general election

Economic Data/Events

US initial jobless claims, PPI

India wholesale prices

China PPI, CPI

Australia unemployment, consumer inflation expectations

Singapore GDP

Japan industrial production

Mexico central bank minutes

Spain CPI

Russia gold, forex reserves

Poland current account

U.K. RICS house prices

EIA Crude Oil Inventory Report

Earnings Reports from TSMC, Bank of America, Morgan Stanley, and Citigroup

Friday, Oct. 15

Economic Data/Events

US business inventories, Sept Advance Retail Sales M/M: -0.3%e v +0.7% prior, Oct Empire Manufacturing: 25.0e v 34.3 prior, Oct Prelim University of Michigan consumer sentiment: 73.5e v 72.8 prior

Canada existing home sales

Eurozone new car registrations

New Zealand manufacturing index

Thailand forward contracts, foreign reserves

France CPI

Italy trade, CPI

Poland CPI

Sovereign Rating Updates

– United Kingdom (Moody’s)

– France (DBRS)

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 Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

Latest posts by Craig Erlam (see all)