The week ahead – Monetary policy puts the aussie, the pound and the greenback in the spotlight
On the macro
It’s a busy week ahead on the economic calendar, with 58 statistics in the spotlight in the week ending 5e November. During the previous week, 56 statistics had been finalized.
For the dollar:
At the start of the week, PMIs in the manufacturing sector will spark interest. Expect ISM survey data to be critical, with employment and cost pressures likely to be the main areas of focus.
On Wednesday, the development of non-farm employment in ADP and the PMIs in the service sector will influence.
Both ADP and ISM non-manufacturing PMI numbers will be key on this day.
On Thursday, initial jobless claims will provide guidance ahead of Friday’s non-farm wages.
If the statistics will influence, however, the Fed’s monetary policy decision on Wednesday will be the main event… Markets have accepted a tapering but are hopeful that interest rate policy remains unchanged.
In the week ending 29e October, the US dollar index rose 0.51% to 94.123.
For the euro:
It’s a busy week on the economic data front.
At the start of the week, German retail sales and manufacturing PMIs will be the center of attention.
Barring preliminary PMI revisions, expect retail sales figures and PMIs for Italy and the Eurozone to be key.
German factory orders and service sector PMIs will provide guidance on Thursday.
At the end of the week, figures for German industrial production and euro area retail sales will also generate interest.
For the week, the EUR fell 0.73% to $ 1.1558.
For the pound:
It’s a relatively quiet week ahead on the economic calendar.
The finalized private sector PMIs for October will be the focus of attention this week.
Expect any review of the services PMI to be key.
On the monetary policy front, however, the BoE’s monetary policy decision will be Thursday’s main event.
Markets expect a few votes to hike and the BoE to prepare markets for an impending rate hike. It could be a dovish move, however, as the BoE seeks to curb inflation rather than react to an overheating economy.
The Grind ended the week down 0.53% to $ 1.3682.
For the loonie:
It’s another relatively busy week ahead on the economic calendar. Trade data will be the center of attention on Thursday ahead of employment figures and Ivey PMI on Friday.
Expect trade and employment numbers to be key.
The loonie ended the week down 0.17% to C $ 1.2388 against the US dollar.
Outside of Asia
For the Australian dollar:
Manufacturing data will be the center of attention Monday before trade data Thursday.
Expect business data to have the biggest influence during the week.
On the monetary policy front, however, the monetary policy decision and the RBA’s rate statement will be the main drivers. With the markets expecting the RBA to remain firm, the economic outlook and forward guidance will be critical.
At the weekend, the RBA’s monetary policy statement will also generate interest.
The Australian dollar ended the week up 0.70% to $ 0.7518.
For the Kiwi-dollar:
It’s another quiet week to come.
On Tuesday, building permits will be the focus ahead of Wednesday’s employment figures, which will be critical.
From the RBNZ, the financial stability report will also have influence on Wednesday.
The Kiwi-dollar ended the week up 0.20% to $ 0.7171.
For the Japanese yen:
The finalized private sector PMIs for October and household spending will be the focus of attention this week.
Unless there are sharp revisions to the preliminary numbers, expect household spending to have a bigger impact.
The Japanese Yen fell 0.40% to 113.950 against the US dollar.
Outside of china
It’s a relatively busy week on the economic calendar.
Private sector PMIs for October will influence market risk sentiment during the week.
NBS figures are expected to be released early Sunday ahead of the all-important Caixin manufacturing PMI on Monday.
On Wednesday, however, Caixin Services’ PMI will also arouse interest.
The Chinese yuan ended the week down 0.32% to CNY 6.4056 against the US dollar.
Nothing new to consider in the coming week, with China and Capitol Hill continuing to be the main areas of focus.
This item was originally posted on FX Empire