review the upcoming economic events that you should be monitoring. Mario Draghi manipulated

the markets like a master after the ECB held rates and policy as expected. Draghi’s comments

sent the euro tumbling 200 points. On the heels of the ECB were surprising earning reports

in the US. Traders were expecting a round of gloomy data, but reports have been pretty

rosy. On Friday, an unexpected move from the People Bank of China sent equities and commodities

rallying. This week’s Federal Reserve meeting could be anti-climactic. Expectations are

low the Fed will provide any new policy insight in the coming week, and focus should stay

on economic reports and a flood of earnings, from Apple, big oil, drug makers and others.

In fact, strategists say more clarity on what the Fed might do should come from the employment

report the following week. Market expectations put a less than 5 percent chance on the Fed

raising rates at its two-day October meeting, and the odds are not even that high for the

Fed's December meeting. The ECB President signaled that more QE and

lower deposit rates could come as soon as December, sending EUR lower across the board.

Fed inaction has put the Bank of Japan in a tough spot. BOJ Governor Haruhiko Kuroda

is expected to announce an increase to the bond buying program to boost growth as the

latest inflation data has disappointed. On Thursday Investors’ attention will turn

to the October BoJ meeting where economists expect another round of easing. If confirmed,

model simulations have shown that more QE should lift USD/JPY by more than 4%.

US data dominates the economic calendar in the coming week with the highlight being the

Federal Reserve meeting on Wednesday. And the week kicks off on Monday with data on

new home sales while the Dallas Federal Reserve manufacturing survey is released.

On Tuesday, the Case Shiller measure of home prices will be released with a gauge of consumer

confidence and figures on orders of durable (or long-lasting) goods with the latter also

serving as a proxy for business investment. Also surveys are released by the Richmond

and Dallas Federal Reserve districts. On Thursday the first estimates of economic

growth are expected for the September quarter with economists tipping annualized growth

rate of 1.7 per cent -- a result that gives the Fed more ammunition to justify the low

rate environment. Also on Thursday is the release of weekly

data on claims for unemployment insurance and pending home sales. And on Friday, data

on personal income and spending is issued with the final reading of the consumer sentiment

index for October from the University of Michigan.