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  • Market Insights  >  Weekly Outlook

27 October 2023,05:31

Weekly Outlook

Market Anticipates Pause In Rate Hike

27 October 2023, 05:31

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The Week Ahead: Week of 30 October (GMT+3)

Wednesday, 1 November, 21:00 – US Fed Interest Rate Decision (Oct)

The markets are currently anticipating that the Federal Reserve will maintain its current interest rates next week. This aligns with recent dovish statements made by Fed officials and the generally favourable economic data. Nevertheless, the possibility of an interest rate hike in December remains.

Thursday, 2 November, 15:00 – UK BoE Interest Rate Decision (Oct)

The Bank of England is scheduled to make an interest rate decision next week. The benchmark rate was left unchanged last month, ending a series of 14 consecutive rate hikes. Over recent months, the UK’s economic growth has shown relative sluggishness. As a result, some economists believe it’s unlikely that the Bank will raise interest rates next week.

Friday, 3 November, 15:30 – US Nonfarm Payrolls (Oct)

In September, U.S. employment saw its most significant increase in eight months, with hiring expanding from 227k to 336k. Conversely, financial markets and many economists share the belief that the Fed has likely concluded its rate-hiking cycle, primarily due to the surge in long-term U.S. Treasury yields to levels not seen in 16 years

Friday, 3 November, 15:30 – US Unemployment Rate (Oct)

The US unemployment rate held steady at 3.8% in September, despite market expectations of a decrease to 3.7%. While there were no significant changes in the rate, recent data on initial jobless claims revealed a notable decline from 211k to 198k. This drop suggests that the labour market continues to exhibit tight conditions.

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