US Federal Reserve is largely anticipated to go for yet another rate cut this year during its meeting Wednesday in the light of weak economic data.
Another 25 Basis Points?
The central bank has already slashed the rate twice already, widely due to the unabated Sino-US trade war and fears of a global slowdown. Expectations point at a third 25 basis points.
The bank led by Jerome Powell has resisted political pressure from President Donald Trump but had to act in the face of current and upcoming challenges. Powell has so far consistently refused to name the decisions a cut cycle.
The Bank of Canada is also gathering for a policy meeting on Wednesday. The BoC is widely expected to keep its interest rates on hold due to Canada’s so for well-faring economy.
The Bank of Japan is also meeting this week. The BoJ’s Thursday meeting is also anticipated to keep its rate on hold although some changes regarding stimulus in the policy may be announced due to trade frictions that have hit Japanese exports hard.
The Central Committee of China’s ruling Communist Party is kicking off a four-day meeting starting on Monday. With the country facing a long-running trade war with the United States, the party will be shifting some of its top-ranking officials.
Elsewhere in Asia, leaders of the Association of Southeast Asian Nations (ASEAN) are gathering for a summit in Thailand’s Bangkok. Chinese, Japanese and Indian leaders among others will be present there.
Brexit and Early Elections
UK Prime Minister Boris Johnson is preparing to challenge the Parliament on snap general elections before December 12. Johnson is set to put his proposal on Monday. The Liberal Democrats and Scottish National Party have already signaled their readiness to approve early election legislation but all eyes will be on the main opposition Labour Party.
Monday: New Zealand Labour Day, Eurozone ECB President Mario Draghi Speaks
Tuesday: US CB Consumer Confidence, US Pending Home Sales, Australia CPI
Wednesday: Germany Unemployment Change, US ADP Nonfarm Employment Change, US GDP, Canada BoC Monetary Policy Report, BoC Interest Rate Decision, Canada BoC Press Conference, US Crude Oil Inventories, US FOMC Statement, US Fed Interest Rate Decision, China Manufacturing PMI, Japan BoJ Monetary Policy Statement, Japan BoJ Outlook Report
Thursday: Japan BoJ Press Conference, Eurozone CPI, Canada GDP, China Caixin Manufacturing PMI
Friday: UK Manufacturing PMI, US Nonfarm Payrolls, US Unemployment Rate, US ISM Manufacturing PMI