Here is what you need to know on Thursday, November 7:
– Trade trouble: The US and China may delay the signing of the trade deal to December as terms and the venue for the ceremony are still discussed. The news that broke late on Wednesday dampened markets. The safe-haven yen and Gold are on the rise while commodity currencies, the euro, and the pound are falling. If things improve, AUD/JPY may be the big winner.
– Super Thursday for the BOE: The Bank of England releases its rate decision, meeting minutes, and the Quarterly Inflation Report. The “Old Lady” may downgrade its forecasts and perhaps remove the hawkish bias. Governor Mark Carney will explain the QIR and answer questions afterward. It is his last such press conference before his term ends.
See BOE Preview: Three reasons why Carney’s last Super Thursday may send GBP/USD down
– UK elections: Opinion polls have shown a marginal squeeze in the Conservatives’ lead, leaving a high probability of a hung parliament with five weeks to go. Prime Minister Boris Johnson officially kicked off the campaign on Wednesday.
– US data: Productivity dropped by 0.3% in the third quarter, well below expectations. This is an ominous sign for future growth. Weekly unemployment claims are eyed today.
– Europe: The European Commission releases new economic forecasts later today after several German figures marginally beat expectations earlier this week. Nevertheless, Brussels is set to downgrade its forecasts.
– Oil prices remain after pressure as OPEC and non-OPEC countries seem unkeen on cutting production.
– Cryptocurrencies are on the back foot, with Ripple dipping below $0.30.
More US-China trade and the global economy: Q&A with FXStreet senior analyst Joseph Trevisani
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