Euro awaits PMI amid closings in Europe

Will the Bank of New Zealand raise interest rates?

PCE inflation and growth data from the US

Powell am Brainard for the Fed

After a week full of many economic data that had a direct impact on currency movements, the markets will enter a new week, starting today, Monday, November 22, in a week marked by Thanksgiving, or what is known as Thanksgiving in the United States of America (Thursday), while the minutes of the previous US Federal Reserve meeting will dominate.

On the third of November to reveal the details of the process of reducing asset purchases, in addition to meeting the Reserve Bank of New Zealand on the course of events.

A quick look at the main events of the past week We started the week with Chinese and Japanese data in the first session of the week, as the Japanese economy contracted by 3% on an annual basis in the third quarter of this year, while Chinese industrial production improved by 3.5% on an annual basis, compared to 3.1% in the September reading, and retail sales rose in the second strongest Economy in the world to 4.9% on an annual basis, compared to 4.4% in September.

Reserve Bank of Australia minutes The events of the Asian session on Tuesday were released, the minutes of the Reserve Bank of Australia and Governor Lowe’s statements (fayezalajmi-4x.com)

In the US session, US retail sales contributed to supporting the US dollar’s gains during the week, US retail sales exceeded expectations in October for the third month in a row (fayezalajmi-4x.com)

Wednesday Inflation data from the United Kingdom and Canada topped the session’s events, as inflation in Britain came above market expectations in October, inflation in the United Kingdom is at its highest level in ten years and the British pound is rising (fayezalajmi-4x.com)

It also rose in Canada at its fastest pace since 2003. Annual inflation in Canada records the fastest growth rate since 2003 (fayezalajmi-4x.com)

On the other hand, the Turkish Central Bank cut interest rates at Thursday’s meeting, as expected, by about 100 basis points, to become 15% two hours from the meeting of the Turkish Central Bank, and the lira hits a new record (fayezalajmi-4x.com)

The markets concluded last week on the reality of retail sales from the United Kingdom and Canada on Friday, as the data came in higher than expected in Britain. Retail sales in the United Kingdom were higher than expected (fayezalajmi-4x.com)

and also better than expectations in Canada slowing better than expectations for Canadian retail sales ( fayezalajmi-4x.com)

This week’s main events

The markets are awaiting many economic data during the sessions of this week, led by the minutes of the US Federal Reserve, the Reserve Bank of New Zealand meeting, US growth and inflation data, in addition to many events such as the appointment of the US Federal President from the White House.

Euro awaits PMI amid closings in Europe

In light of the re-spread of the Corona virus, European countries have begun to restore restrictions, and some of them are enacting new restrictions, such as Austria, which imposed a closure that includes all residents who will be required to meet the vaccine, as the first European country to take this measure, while Germany announced new restrictions as well and the Netherlands, and on the way many European countries, which Pay citizens to demonstrate in protest against these restrictions.

These restrictions from European countries raise markets’ fears about slowing growth, and therefore markets are awaiting the PMI services and manufacturing PMI for the eurozone countries for the month of November on Tuesday morning to know the direct impact of these closures.

The euro was one of the most prominent currencies that came under pressure last week, and it continues to trade this morning below the 1.13 levels, affected by the restrictions imposed by Europe.

Will the Bank of New Zealand raise interest rates?

In the Asian session on Wednesday, the Reserve Bank of New Zealand (RBNZ) will announce its monetary policy and interest rates, as expectations indicate that the bank will raise interest rates for the second consecutive month by 25 basis points to reach 0.75%.

The New Zealand Bank raised interest rates on the sixth of October to become the first bank of the major economic banks around the world to raise interest rates if we exclude South Korea, which raised interest rates at the end of August, stressing that it will continue to raise it until inflation rates stabilize in the medium term.

The latest figures issued by the New Zealand economy confirmed that inflation is still rising above the bank’s estimates and target, as a survey conducted by the Reserve Bank of New Zealand every three months including business managers, economic professionals and industry leaders showed that inflation may rise to 2.96% in the last quarter of this year, compared to 2. 27% in the second quarter survey, while expectations indicate that inflation will rise to 3.70% at an annual pace, compared to 3.02% in the third quarter estimates, at its highest level in 11 years. These expectations may force the bank to dare and raise interest rates by 50 basis points next Wednesday, and accordingly we will witness stronger movements in the New Zealand dollar.

Fed Minutes and PCE Inflation and Growth Data From the United States, attention will be focused on next Wednesday, a day before the Thanksgiving holiday, when the preliminary reading of the third quarter GDP will be announced, as markets expect a bullish reading to 2.2% from 2%.

The US Federal Reserve’s preferred indicator of PCE inflation will be released on Wednesday in the US session, and thus it will give the market a better view of inflation in the world’s largest economy, where it is expected that the Fed’s target will come 2% on an annual basis.

We will conclude Thursday’s trading session with the minutes of the US Federal Reserve, which was held on the third of last November, to shed light on thE