Market Opportunities : Week 30-10-2023 - 03-11-2023

USDIDX: Federal Reserve interest rate decision is the key event in the October 30 – November 3 week. Fed chair Jerome Powell will hold a conference on November 1. Several members of Federal Open Market Committee have voiced their support for continued tightening of monetary conditions to bring inflation down to acceptable level of 2%. Fed chairman Jerome Powell’s commented that US inflation is “still too high” despite a recent slowdown after University of Michigan survey results indicated consumer "assessments of personal finances declined” as inflation expectations soared in preliminary October data. It is widely expected the benchmark rate will be held unchanged at 5.5%. In case the Fed raises interest rates by 25 basis points at its November 1 meeting the USDIDX will get a bullish boost.

GBPUSD: Bank of England (BOE) interest rate decision due on November 2 is an important economic event. BOE held rates at 5.25% at its September meeting. UK consumer price inflation remained unchanged at 6.7% in the year to September. A BOE decision to raise rates at its November meeting will be bullish for GBPUSD.