• Big week for US and Eurozone
  • Japanese pension fund loses big
  • IMF decision on Yuan
  • Oil looking to stay low

This should be a busy week for currencies, especially the Euro, as several key reports are set to come out at the end of this week.  The most notable of these reports are the ECB interest rate decision and US Jobs report on Thursday and Unemployment Rate report for the US on Friday.  This is the last set of jobs data before the anticipated Fed meeting in December at which it is expected that rates will be raised.  Dollar has maintained gains gotten over the last couple of weeks on this expectation and the Euro has continued to weaken on the expectation of more rate cuts and QE actions to be announced on Thursday.

On the other side of the world there is continued mixed data in the Asian markets the largest pension fund in the world lost $64 billion in market value in the 3rd quarter.  This marked the largest loss since 2008 and the Yen has weakened after the announcement despite retail sales beating expectations.  A silver lining for the Asian markets is that the IMF is scheduled to announce its decision on including the Chinese currency in the basket of reserve currencies which would be a huge step in legitimizing the global standing of China in the Forex markets.  It is widely expected that the currency will be included as the IMF’s Lagarde indicated that would be the case after the organizations review in November.

OPEC is scheduled to meet this week with little expected to come from the meeting.  This meeting comes after the second largest producer in Russia reported a large drop in profits of 62% and the Atlantic hurricane season ends without major incident.  Combined with the continued global supply glut oil looks set to remain low if not fall further in price as there have been no real events to deter this trend.

EURUSD: Euro down this morning as markets await Thursday’s decision.

GBPUSD: The pound also down this morning as USD continues to remain strong and mediocre data trickles out of the UK.

AUDUSD: Aussie dollar up this morning on good Corporate Profits reports.

USDCAD: Canadian dollar staid relatively stable over the weekend with little data to change it.  CAD will look ahead to the end of the week and their Unemployment report for direction.