Talking Points:
• This week's top, concentrated event risk has already crossed the wires in China 3Q GDP
• A focal point of the IMF's, Fed's and investors' worries; China GDP slowed to a multi-year low but still beat
• With risk trends maintaining an uneasy balance; rate expectations for the USD, EUR, GBP and NZD take stage
See how retail traders are positioning in the majors in your charts using the FXCM SSI snapshot.
The mere presence of top event risk does not always guarantee a decisive market trend nor exceptional swell in volatility. Point-in-case, Monday's China 3Q GDP left global equities, commodities and the Aussie Dollar little moved. Rather than build confidence, the data and market response draw a critical and skeptical eye from market participants. The world's second largest economy is expanding at its slowest pace in years, but it still managed to beat expectations with the 6.9 percent annual pace. Does this alleviate the prominent threat to speculative appetite? Does it remove a hurdle to the Fed's move to tighten rates? These are questions that are heightened rather than resolved. As we await a clear view on risk trends, monetary policy themes are still at work. Rate forecasts for the Fed and stimulus speculation for the ECB are proving active. Meanwhile, moderation in speculation over the BoE delay and RBNZ disarmament present potential rebalancing to trend. We look at the active market moves and major drivers in today's Trading Video.
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