Remember, Remember the 4th of November.

In an embarrassing sequence of events for President Biden, as he jetted off to the G20 meeting in Rome, the Democrats abandoned their planned vote on his Build Back Better bill. Biden had hoped to boast of a bumper environmental package at COP 26 in Glasgow next week.

The President’s approval ratings have been sliding and with the US mid term elections scheduled for next year, his ability to get anything through congress could be hindered if the republicans retake control of the house.

US GDP yesterday missed their forecasted 2.6%, the Commerce Department sited that disappointing jobs growth in September was a contributing factor, as well as Delta infections and a poor vaccine uptake.

The Commerce Department have also cited that supply chain struggles and consumer demand have driven inflation to 5.4%, this could force the Federal Reserve’s hand regarding interest rates.

Focus next week will be firmly on the Bank of England’s rate announcement on Thursday 4th. The Governor, Andrew Bailey, has recently made comments that the Central Bank needs to act to curb inflation.  It is widely expected they will hike rates by 0.25% next week or in December. If there is no hike on Thursday, the attention will switch to the preceding press conference for forward guidance as well as the weighting of the MPC’s votes. We can expect volatility leading up to the announcement that will present opportunity.

Economic Calendar

Expected Previous
09:00 EUR German Prelim GDP (Q/Q) 2.2% 1.6%
13:30 CAD GDP (M/M) 0.7% -0.1%
13:30 USD Core PCE Price Index (M/M) 0.2% 0.3%
14:25 USD Chicago PMI 63.6 64.7
15:00 USD Revised UoM Customer Sentiment 71.4 71.4

*All rates shown are indicative of interbank rates and should only be used for indication purposes only. It is important to note that foreign exchange rates fluctuate and that rates may vary depending on the amount and the base currency that is purchased or sold. Rates are correct as of 8:00am UK time. CentralFX are not responsible for the rates shown.