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Last updated: august 13, 2026 at 12:53 pm

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A packed week lies ahead with major rate decisions from the Federal Reserve, Bank of Canada, European Central Bank, and Bank of Japan making it one of the most pivotal stretches of Q4.

Monday & Tuesday, October 27, 28

With limited economic releases at the start of the week, investor attention has been buoyed by the positive signals emerging from the recent US-China bilateral talks. Delegations hammered out a framework aimed at reducing tariff escalation and addressing contentious issues such as rare earths, fentanyl, and port logistics. While no formal deal emerged, the dialogue defused immediate trade tensions and set the stage for further negotiations, with both sides emphasizing commitment to communication and the safeguarding of prior trade achievements. Markets responded with a gap up futures open, reflecting relief and renewed optimism.

Wednesday, October 29

Federal Reserve Interest Rate Decision

The Federal Reserve is highly anticipated to cut its policy rate by 25 basis points, lowering the target range to 3.75–4.00%. Analysts widely expect an additional reduction in December as policymakers weigh labor market weakness against persistent inflation. This meeting may also see discussions on ending the Fed’s balance sheet runoff amid recent money market volatility, a move with potential implications for broader liquidity conditions. With government data flow hampered by shutdown-driven delays, the Fed faces added uncertainty in assessing the true economic backdrop.

Bank of Canada Interest Rate Decision

The BoC is also expected to cut rates by 25bps to 2.25%, according to most economists surveyed.

While inflation remains sticky, business sentiment has cooled and trade tensions with the U.S. have resurfaced after President Trump’s decision to suspend negotiations with Canada. The central bank’s new Monetary Policy Report will be closely watched for its growth forecasts and updated neutral rate estimate.

Thursday, October 30

Bank of Japan Interest Rate Decision

The BoJ is expected to hold rates steady at 0.50%, even as speculation grows around a possible hike early next year.

Political change in Japan with Takaichi’s rise to Prime Minister after the collapse of the long-standing LDP-Komeito coalition has likely delayed any near-term policy shift.

That said, advisors to the new government have hinted that a modest hike by January could be tolerated if growth remains firm. The BoJ’s Outlook Report is expected to reaffirm a moderate recovery and may include a slight upward revision to FY25 growth forecasts despite global trade headwinds.

Trump-Xi Meeting

On the sidelines of the APEC Summit in South Korea, President Trump and President Xi will meet for the first time in over a year.

The agenda includes rare earths, soybeans, fentanyl, technology exports, and Taiwan — all flashpoints in the trade relationship.

While expectations are low for major breakthroughs, both sides appear keen to prevent fresh tariffs as the current truce expires on November 10th.
The meeting is less about solutions and more about stabilizing relations heading into the year end.

ECB Interest Rate Decision

No surprises expected here. The ECB is widely anticipated to hold rates at 2.00%, maintaining a data-dependent approach.

September’s forecasts showed 2026 inflation at 1.7%, just below target — enough to justify patience. President Lagarde’s balanced risk assessment suggests policymakers are comfortable sitting tight until the December update, when new projections arrive.

Friday, October 31

Chinese Manufacturing PMI

China’s Manufacturing PMI is forecast to remain just below 50, highlighting the sector’s ongoing, though possibly easing, contraction. A sub-50 print would reinforce concerns about demand weakness in the world’s second-largest economy, potentially weighing on global equities, industrial metals, and energy prices. Export-driven regions and commodities closely tied to Chinese manufacturing—such as copper and iron ore—may face further downward pressure. Investors will be watching for signs of incremental improvement or renewed policy support from Beijing.

Major U.S. Earnings This Week

  • • Visa (Tuesday After Market Close)
  • • Boeing (Wednesday Before Market Open)
  • • Meta (Wednesday After Market Close)
  • • Microsoft (Wednesday After Market Close)
  • • Alphabet (Wednesday After Market Close)
  • • Amazon (Thursday After Market Close)
  • • Apple (Thursday After Market Close)

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