There is a heavier news schedule this week, which includes input from central banks concerning the USD, GBP and AUD, as well as the key U.S. Non-Farm Payrolls data sequence.
Markets are still somewhat jittery from the unexpected vote by the United Kingdom to leave the European Union, which has plunged that country into a severe political and constitutional crisis. It is by no means completely clear that the referendum result will even be honored, so it is probable that day-to-day political developments within the U.K. and the E.U. Commission are going to have some impact upon the markets during the week ahead.
The key days this week are likely to be Tuesday, Wednesday and Friday.
U.S. Dollar
It will be an important week for the Greenback after Monday’s public holiday ends. Wednesday will see the release of FOMC Meeting Minutes as well as ISM Non-Manufacturing PMI data. On Thursday we will get the ADP Non-Farm Employment Change and Unemployment Claims numbers, as well as Crude Oil Inventories, followed by the Non-Farm Employment Change, Unemployment Rate and Average Hourly Earnings data on Friday.
British Pound
It will be a crucial week for the Pound, with political developments concerning the implementation of Britain’s exit from the E.U. and shape of a new government continuing to sit center stage. Concerning scheduled economic data, Tuesday will see the Governor of the Bank of England present the BOE Financial Stability Report. Services PMI will be released that same day, following the release of Construction PMI numbers on Monday. Finally on Thursday there will be a release of Manufacturing Production data.
Australian Dollar
There is some political uncertainty here as the result of the General Election looks set to remain unclear for a few days due to a very tight result so far. Meanwhile the week will begin on Monday with the release of Building Approvals data, but the highlight will arrive on Tuesday with the monthly RBA Rate Statement and Cash Rate, as well as Retail Sales and Trade Balance data. There is some expectation that the interest rate might be cut.
Canadian Dollar
It will be a fairly busy week for the Loonie, with Trade Balance data due on Wednesday, followed by Employment Change and Unemployment Rate data on Friday.
Japanese Yen
It will be a very light week for the Yen, with nothing scheduled except the Governor of the Bank of Japan’s speech to a Branch Manager’s meeting on Thursday.
New Zealand Dollar
It will be a very light week for the Kiwi, with nothing scheduled except the release of GDT Price Index data late on Tuesday.