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The Week Ahead 9th October 2017

Preparation is Key

 

Whilst learning to trade one of the most important aspects you need to be aware of is that of preparation.

It was once famously said that by failing to prepare we are preparing to fail.

Well let us help a bit and guide you through the important events during the week ahead.

 

Another Holiday Day.

 

We start the week with the US away for Columbus Day. It was on October 12th 1492 that saw the arrival of Christopher Columbus in the Americas. Though the markets are open for the day it is very likely that we will see a quiet session in the markets. There is no real data out either for the entire day. Some ECB speakers are around but seeing as the whole of last week saw very little from all the Central Bank speakers it is unlikely anyone will say anything market moving.

Tuesday is similarly very quiet with no real data being released aside from UK Industrial Production.

 

FED Minutes.

 

Wednesday, we see the release of the Federal Reserve Minutes from their last Interest Rate setting meeting. Though the market will wait in anticipation of the minutes we are not expecting any shocks from the discussions that are being had. Most see December as firmly being the next time we will see the US raise their Interest Rates and it is doubtful that there will be anything to change this path.

On Thursday, we will see the release of some US Inflation data as well as BOE Haldane, ECB Draghi and FEDs Brainard and Powell speaking. We round off the week with some more inflation data from both Germany and the US as well as US Retail Sales.

 

Earnings Season

 

We see earnings throughout the week as well. Some major US banks release earnings including JP Morgan, Citigroup, bank of America and Wells Fargo. Also reporting are Blackrock, Dominos, Samsung, Bookers and Sky. With equities already on their highs good numbers from these companies will fuel them even higher.

 

Watching the Cable

 

Last week we saw the US/Pound, known as the Cable, sell-off heavily. With the turbulence surrounding PM May and her cabinet shrouding her for the week the market reflected this losing a fair chunk of its value. We saw the Sterling sell-off from around the 1.34 mark down to lows of 1.3048. With this in mind and sentiment likely to stay the same for a little bit longer we are looking at any bounces in the Cable to sell into. Should we get as high as 1.3295 our thought is to try and sell up there based on the 38.2% Fibonacci Retracement.

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