The Non-Farm Payrolls September report was a forceful reminder that the Fed will not rush to unwind QE and hike interest rates prematurely. Modest payrolls gain of 200K, almost twice lower than projected 500K, suggests that the Fed may postpone QE announcement till December and will think twice about whether to signal markets about possible rate hike next year via dot plot. Consequently, other currencies with low interest rates, EUR, GBP and JPY, get a chance for rebound against USD, which could be the key trading idea for FX for the next week.
Next Tuesday, investors will likely pay some attention to German economic sentiment index from the ZEW. An upside surprise will likely fuel concerns that inflation in the Eurozone may accelerate due to increased economic activity.
On Wednesday, investors are likely to focus on the minutes of the Fed meeting to clarify the Central Bank's plans to reduce asset purchases. A hint at the beginning of this process in November will most likely have a positive effect on the USD price.
On Thursday, attention should be paid to the report on claims for unemployment benefits in the US, the report on US oil inventories from the EIA and the report on unemployment in Australia.
Markets will analyse the US retail sales report on Friday. The broad indicator is expected to rise by 0.5%, but the strong data is likely to give strength to the dollar to resume the bullish trend.