Look Ahead 26/10/23: ECB rates; US growth
The main event on both sides of the Atlantic is the ECB interest-rate decision. No change is expected but the potential for some hawkish rhetoric has recently risen with the uplift in the price of oil following Middle East .
(Video Transcript Summary)
Inflation worries: how EUR, USD will react
On Thursday 26 October 2023, a number of important things are happening that could affect trading in the UK and the US. In the UK, there's a trade survey coming out that'll give us some insight into the country's trade activity.
In Europe, the European Central Bank (ECB) is going to announce their interest rate decision, but it's expected that they won't change the rates.
What we'll really be paying attention to is what they say about inflation, because it's been higher than they want it to be. This could affect how the euro and the US dollar are traded, and the value of the euro against the US dollar.
US Q3 growth rate due
In the US, people will be focused on something called the third-quarter growth rate. Basically, this tells us how well the economy has been doing in the past few months. This will be the first time we get to see these numbers, and it's happening right after the ECB announces their interest rate decision.
So there will be some interesting opportunities to trade the euro against the US dollar during those 15 to 30 minutes. Right now, the euro's doing pretty well and showing signs of strength, but there are some uncertain factors like the ECB's view on interest rates and not-so-great economic data from Germany.
Unilever's surprising rebound: what's next?
As for companies, Unilever is going to release a statement that tells us how they've been doing. Their stock has been bouncing back and it might stay within a certain range. But, there's also a pattern forming that could lead to a decline in the stock's value if it breaks a certain level.
Other European companies reporting earnings include Volkswagen, BNP Paribas, TotalEnergies and Porsche. In the US, the big companies reporting earnings include Ford Motor, Caterpillar, Intel, Amazon and maybe even Manchester United.
Ford Motor has been struggling because people don't have as much money to spend on new cars. And there are also trading opportunities to watch out for with Intel and Amazon's earnings reports.
So, 26 October is going to be a super busy day with all these economic events and earnings reports affecting the currency and stock markets in the UK and the US. It's definitely a day to keep an eye on if you're into trading.
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