Many Market Events Ahead
We love September, don’t you? In many parts of the world school is now back in session, the heat of summer is either over or coming to an end and while many people are back from their vacations, the holiday season is already in sight. For markets though, this September is anything but calm with the economic calendar listing numerous events that could interest traders and potentially impact various markets.
Want some examples? Let’s take a quick look…
Some of the events are not your ordinary calendar listing. Hurricane Harvey and the tensions in the Korean peninsula have certainly added a lot of uncertainty to global markets and it will likely take a while before their full impact can be properly assessed.
Elections are also on this month’s timetable. While polls suggest that Angela Merkel will win on September 24th, it will still need to construct an effective coalition and considering Germany’s role as the union’s largest economy, any result could impact the EU – not to mention the already strained Brexit negotiations.
Norway is also heading to the polls on September 11th and New Zealand will do the same on September 23rd.
In business news – Apple is scheduled to release its new iPhone 8 and regardless of whether it’s an instant success or a flop – it’s bound to get attention.
We are also facing many major central bank policy meetings. The ECB is meeting tomorrow and it may or may not make decisions regarding its easing policy and any decision could affect the Euro, other currencies and various instruments. The Fed aims to start to normalize its balance sheet as early as September 20th. Traders are also curious to see if the BoC – that is meeting today – will initiate its first rate hike in nearly seven years.
The GBP’s volatility could play a role in the BoE meeting on September 14th. Considering negative real wage growth and the current economic data, it’s hard to see a substantial hawkish move, but there could always be surprises.
Keep in mind that there are many other central bank meetings that could interest traders such as Japan, Russia, Australia, Brazil and Mexico.
Another topic on the radar is the US’s ability to pay its bills and surrounding negotiations. According to the US Treasury Secretary officials, the Congress has to raise the debt ceiling by September 29th. While it’s hard to imagine that the United States will default on its debts, we have President Donald Trump and its threats to shut down the government as an added factor of uncertainty. And speaking of the US President, the NAFTA renegotiations also continue this month.
For online traders a busy calendar could mean potential opportunities. Remember: You can always choose to short or long your position, potentially taking advantage of price change in any direction – up or down. Want to know more? Drop by our education center.