Baxia Markets
October 14, 2023

Week Ahead Analysis in FX: Oct. 16-20

WEEK AHEAD - BEAR AND BULL - FUNDAMENTAL ANALYSIS - BAXIA MARKETSThe third week of October is set to unfold with a slew of key economic indicators from various major economies. As market participants await these releases, we are here to guide you through the potential market movers and their likely impact on prominent currency pairs.


NZ CPI (Consumer Price Index) - A primary gauge of inflation for New Zealand. A surge in the CPI could hint at potential tightening measures by the Reserve Bank of New Zealand. Ultimately, data reports that are outside of analyst expectations will stir pricing volatility for NZD currency pairs.


UK Claimant Count Change - Reflects the number of people claiming unemployment benefits. A rising claimant count could be a red flag for the GBP, signaling potential labor market issues. A decline, however, might give the GBP a modest boost.


Canada's CPI - The Canadian inflation data will be closely monitored by traders. Higher-than-expected inflation may signal potential hawkish turns by the Bank of Canada. As with other inflation releases, reports further away from analysts' expectations will result in volatility of the CAD value against other currencies.


US Retail Sales - A primary measure of consumer spending, strong numbers can lend support to the USD by signaling economic vigor, while a decline could be a bearish sign for the currency.



UK CPI - A pivotal inflation metric for the UK. Rising CPI figures might foster expectations of a more hawkish Bank of England stance. Keep in mind, CPI releases further away from analyst expectations will create more pricing volatility for the GBP against other currencies.



AU Employment Change - Employment data from Australia. Positive job growth can act as a tailwind for the AUD, reflecting economic strength, while a decline in job numbers might send ripples of concern, potentially dampening the currency's outlook.


US Unemployment Claims - Weekly data offering insights into the health of the US job market. Fewer claims might provide a boost to the USD, indicating a healthier labor market, whereas a spike could be cause for concern.



UK Retail Sales - This metric provides insights into consumer spending patterns in the UK. An upswing can suggest consumer optimism, which might uplift the GBP, while a downturn can dampen the currency's prospects.


Traders, the week ahead is loaded with events that can induce significant price movements. Stay on top of the data, refine your strategies accordingly, and as always, ensure you're implementing solid risk management practices.


For your easy reference, you can find all important economic events anytime at your convenience by accessing our Economic Calendar here.


How to Trade economic events?

  1. Open an account to get started, or Try the platform
  2. Select your preferred forex trading platform
  3. Open, monitor & close positions on FX pairs

Forex trading around economic events demands an account with providers like Baxia. Major forex pairs like EUR/USD and USD/JPY are on many traders' radars, especially during impactful economic occurrences such as interest rate announcements or inflation data. These events can induce heightened volatility, implying the potential for both higher profits and increased risks.


You can help develop your forex trading strategies using tools like Baxia’s Learning Center. Once your trading strategy is developed, follow the steps above to open an account and kickstart your forex trading journey.


Keep in mind, your profit or loss is calculated according to your full position size. Using leverage amplifies both your profits and losses. It's crucial to manage your risks as losses might surpass your initial deposit. Make sure you understand with the risks of leveraged trading before diving in. Always trade with funds you can afford to part with.

Open Live Account  


Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.


Subscribe by Email