This week should be busier than last week, with the focus falling upon the U.S. and Australian Dollars and the British Pound. There is plenty of economic data due for the U.S. Dollar, particular the non-farm payrolls, and the market will be watching closely to whether if the U.S. economy continues to move forward or is beginning to falter. Next the Australian Dollar will get its monthly central bank statement and interest rate decision, and the focus will be on the timing of a potential cut in the rate. Finally, the U.K. General Election on Thursday may prove crucial in providing a new directional impetus to the British pound, or at the very least, some volatility.
U.S. Dollar
This will be an important week for the U.S. Dollar, with Friday’s Non-Farm Employment Change and Unemployment Change data likely to dominate the agenda. Tuesday will see the release of Trade Balance and ISM Non-Manufacturing PMI data. On Wednesday we will get the ADP Non-Farm Employment Change data and the Chair of the Federal Reserve will be speaking on a panel. Thursday will see the announcement of Unemployment Rate numbers so overall it will be quite a busy week.
Australian Dollar
It will also be a very important week for the Australian Dollar with significant information coming out every day of the week. Tuesday will see the release of the RBA Rate Statement and announcement of the Cash Rate plus Trade Balance data. On Friday the RBA Monetary Policy Statement will be released. Earlier in the week there will Building Approvals data on Monday and Retail Sales data on Wednesday, followed by Employment Change and Unemployment Rate data on Thursday.
British Pound
The British agenda is dominated this week by a General Election on Thursday with results becoming known during the early hours of Friday. The polls are still indicating the result is too close to call, but current forecasts suggest a Parliament will be elected with the pro-independence Scottish National Party holding the balance of power, and this is likely to lead to a change of government and Prime Minister from the right to the left of the political spectrum. The likely result may lead to a period of instability which could weaken the British Pound. Alternatively, if the Conservatives do better than expected and the Coalition manages to maintain its majority, this might give a boost to the currency.
Earlier in the week, Monday is a public holiday, Tuesday will see the release of Construction PMI data, and on Wednesday Services PMI numbers will be announced.
Canadian Dollar
There is a fair amount of economic data due this week. On Tuesday there will be a release of Trade Balance data. Wednesday will see the Ivey PMI numbers. On Thursday there will be a release of Building Permits data, and last but very much not least, there will be Unemployment Rate and Employment Change numbers on Friday.
New Zealand Dollar
It looks like a fairly quiet week. Tuesday will see the GDT Price Index data release. On Wednesday there will be Employment Change and Unemployment Rate numbers.
Euro
A very quiet week ahead, with nothing on the agenda this week except for Spanish Unemployment Change data on Tuesday.