Baxia Markets
October 21, 2023

Week Ahead Analysis in FX: Oct. 22-28

WEEK AHEAD - BEAR AND BULL - FUNDAMENTAL ANALYSIS - BAXIA MARKETSAs the month of October advances, another week loaded with economic revelations awaits us. The forthcoming week promises an abundance of data releases that could significantly sway our trading landscape. Below is a comprehensive breakdown of the events and a brief summary of their potential impact.


UK Claimant Count Change - This is an essential snapshot of the UK's labor market. A surge in claimant counts may paint a bleak picture of the UK's employment situation, potentially exerting downward pressure on the GBP. On the contrary, a reduction could serve as a bullish indicator for the GBP pairs.



Australia's CPI - The Aussie dollar traders will be zeroing in on the inflation figures. A rise beyond expectations in the CPI could instigate AUD appreciation as it may point towards possible monetary tightening by the Reserve Bank of Australia.


BOC Rate Statement - The Bank of Canada's policy statement is eagerly anticipated. Should there be hints of hawkishness or future rate hikes, the CAD might witness buying pressure. A dovish tone or concerns over global economic growth, conversely, may weigh on the CAD.



ECB Main Refinancing Rate - This is always a significant event for Euro traders. Any unexpected shifts or insights into the European Central Bank's future monetary stance can lead to volatility in the EUR pairs.

US GDP - Gross Domestic Product data can sway market sentiments rapidly. A robust growth figure could spur USD bullishness, reflecting a thriving economy. However, a disappointing read might dampen spirits, potentially pressuring the greenback.

US Unemployment Claims - This weekly insight into the US labor market remains a keenly watched metric. A dip in claims could be a bullish signal for the USD, while an uptick might raise eyebrows about the health of the job market.



US PCE Price Index - This index is the Federal Reserve's preferred gauge of inflation. A rise in this metric might suggest increased inflationary pressures, possibly boosting the USD on heightened rate hike expectations. A subdued reading might place the USD on the back foot.


Traders, gear up for a potentially volatile week. Armed with the right information, the forthcoming days might present a myriad of opportunities. As always, prioritize risk management and stay abreast of any unforeseen global events that could add another layer of volatility to the mix.

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.

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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.


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