Forex News Trading Strategy For The Week

Jarratt Davis

Special Consultant to the FPA
Forex News Trading Strategy for the 3rd of October - 7th of October

October began with UK PM confirming that Article 50 will be invoked by the end of March 2017. Once it is invoked, the UK will have two years to negotiate its future relationship with the European Union.

The main event for Monday will be the US ISM Manufacturing PMI. Investors will be closely watching to see if the index can bounce back in September after a disappointing August when it fell unexpectedly from 53.1 into contraction territory at 49.4.

Tuesday marks a big day for the antipodean currencies with the RBNZ Governor slated to speak just ahead of the RBA Cash Rate Decision and Rate Statement. Later during the Tuesday session is the release of the latest GDT Price Index; which has continued to see increases since the beginning of August.

Wednesday starts with Australian Retail Sales for August. It is expected to come in at 0.2% for the month after a flat July. During London, the UK Services PMI will be the main event. This is often a volatile event; and the most important PMI print we will see out of the UK this week with services being the largest sector of the UK economy. UK services is coming off of a very good August, where at 52.9, the sector PMI saw its sharpest monthly increase in the survey's history.

During New York, we will get our first glimpse into the U.S. labor market for September when ADP releases their employment change report. Later in the session comes the ISM Non-Manufacturing PMI which slowed sharply in August. Expect a large rebound in this report, with the consensus at 53.0.

Thursday is likely our quietest day of the week. However, the ECB Monetary Policy Meeting Accounts is the only really significant event of note. With that said, the information will only be market moving if it contains any unexpected surprises.

Friday brings the end of another trading week, and with it, the September labor report for the U.S. With investors looking for any clues to a Fed move in December, each report becomes more important, and potentially more volatile. Payrolls are expected to rebound slightly in September to 170,000 after August’s less than expected gain of 151,000. Average earnings are expected to come in at a solid 0.3%, which would be a positive note for hawkish Fed watchers.

You can find other Forex news trading events taking place this week here: Forex Factory Calendar.

P.S. - If you want to learn more about how I trade, check out the link below

Jarratt Davis - Free Forex Course
Last edited: