**Forex Market Weekly Outlook: Key Events and Analysis**
*Original author: Mitrade News Team. Additional insights sourced from DailyFX and Forex Factory.*
The upcoming week in the foreign exchange markets presents a landscape filled with crucial data releases, central bank pronouncements, and shifting market sentiment. As October heads toward its close, traders are preparing for a series of announcements and economic indicators that could shape the direction of major currencies. The following analysis outlines the significant data points and market drivers to watch, delves into technical and fundamental perspectives, and summarizes the potential impacts on the forex landscape.
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## **1. Recap of the Previous Week: Market Sentiment and Key Movements**
The US dollar demonstrated notable resilience over the past week, buoyed by positive economic indicators, continued hawkishness from the Federal Reserve, and increasing global risk aversion. Notably:
– The USD Index (DXY) pushed to multi-month highs as robust US GDP and retail sales readings reinforced the narrative of economic exceptionalism compared to other major economies.
– Yields on US Treasury bonds maintained elevated levels, attracting inflows to the greenback.
– Emerging market currencies and traditional risk assets such as equities experienced renewed volatility due partly to escalating geopolitical tensions and ongoing concerns about China’s economic outlook.
– The euro and British pound remained under pressure amid sluggish regional growth and dovish signals from the European Central Bank (ECB) and Bank of England (BoE).
– The Japanese yen weakened against the dollar even as intervention speculation resurfaced.
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## **2. Key Economic Events and Releases This Week**
The upcoming trading week is packed with pivotal events that could significantly influence forex dynamics. Market participants will be specifically focused on the following:
### **Federal Reserve Rate Decision and Press Conference**
– The Federal Open Market Committee (FOMC) meeting will be the week’s centerpiece. While consensus sees no change in the federal funds rate, attention will focus on Chair Powell’s post-meeting commentary.
– Traders will scrutinize for hints regarding the Fed’s monetary policy trajectory into 2025, especially regarding inflation persistence and labor market resilience.
### **Non-Farm Payrolls (NFP) and US Labor Data**
– The monthly US employment report remains the single most-watched data event for the dollar.
– Key metrics include headline job additions, the unemployment rate, labor force participation, and average hourly earnings.
– Strong data will reinforce US exceptionalism, while softer results may trigger dollar selling.
### **Global Central Bank Meetings**
– In addition to the Fed, the Bank of England releases its own rate decision. Markets expect a hold, but forward guidance will be critical in light of UK inflation and recent economic softness.
– The Bank of Japan (BOJ) holds its policy meeting. With inflation readings showing some upward movement and the yen near intervention territory, traders anticipate changes in wording or policy tweaks.
### **Other Influential Data Releases**
– China: Official PMI and Caixin PMI for manufacturing and services will deliver insight
Read more on AUD/USD trading.