It's been 7 years since the benchmark interest rate for the US has been at near 0 percent. The US Federal Reserve is expected to start raising interest rates in December and if not then, in early 2016.


For almost 3 years, the Japanese prime minister, Shinzo Abe, has been fighting to implement his policy of so-called "Abenomics", consisting of massive fiscal and monetary stimulus designed to eradicate deflation in Japan.


For the better part of this year's summer it seems that the major Forex pairs have been in a dull, non-trending state. Pairs such as the EUR/USD and GBP/USD have bounced between two levels for months, without any direction.

This seems to be changing now that the drumbeat for a Fed rate hike has become more prominent, and the US economy proves to be the most resilient in the world.


The Australian central bank is the latest central bank to jump onto the monetary easing bandwagon. The bank, stuck with a poor hand of cards, said at today's interest rate decision that they would determine whether there was a "scope for further easing of policy", which translates into another interest rate cut.


Economists aren't expecting a rate hike during tomorrow FOMC meeting of the Federal Reserve. Instead, look for clues on what the Fed may do in the next December meeting. In all likliehood the first rate hike in a decade will be delayed until 2016, and Janet Yallen, Chair of the Federal Reserve, will be grasping for any reason to justify this.


The Liberal Party has won Canadian elections, ending nearly a decade's long conservative-run government. In addition to this, tomorrow (Wednesday) at 14:00 GMT the Bank of Canada will announce it's interest rate decision.

The majority consensus is for the central bank to keep it's overnight rate on hold, at 0.5%. So the market will be looking at the bank's monetary policy report as well as the press conference which happens afterward for market direction.


The gauge for wholesale prices, or PPI (producer-price index), has declined by the most since the start of 2015 as gasoline and food prices fell.

Economists were looking for a 0.2% decrease but the 0.5% fall was the biggest since January. As prices for staple goods such as fuel and food fall, the effects will filter through to headline inflation, and this will not be good for the Fed.


The driver of Europe's economy is going to be facing huge tests of it's staying power.

China's slowing economy and crashing stock market, along with Volkswagen's diesel engine scandal are sure to put strain on the nation's finances. Data has showed this week that the manufacturing sector and purchasing activity have already suffered.


Minutes from the Federal Reserve's September meeting showed that the US central bank delayed raising rates from 0% because of risks to their growth outlook and inflation. They did say they were on track to raise rates later this year.

This week, NZ dollar is trying to strengthen though the demand for the US currency is high as the Yuan turmoil is subsiding and quite positive macroeconomic statistics are released.