This week is the first week after the summer and is traditionally a time when we see a major increase in market volatility and often the start of strong directional price movements as well. Volatility is likely to see a significant increase this week on last week.
The week is likely to be dominated by Non-Farm Payroll data concerning the U.S. as well as central bank input concerning the Australian and Canadian Dollars, as well as the British Pound.
The market is likely to be most active on Friday.
Monday is a public holiday in the U.S.A. and Canada.
U.S. Dollar
It will be an important and busy week for the greenback after Monday’s public holiday, starting with ISM Manufacturing PMI data on Tuesday. On Thursday we will get the ADP Non-Farm Employment Change, ISM Non-Manufacturing PMI, and Crude Oil Inventories. Finally, Friday will bring the Non-Farm Employment Change, Average Hourly Earnings, and the Unemployment Rate.
British Pound
It will be an important and active week for the Pound, starting with Manufacturing PMI data on Monday. On Tuesday we will see the Inflation Report Hearings, with the Bank of England testifying before Parliament. Wednesday brings a release of Services PMI numbers.
Canadian Dollar
It will be an important and busy week for the Loonie after Monday’s public holiday, starting on Wednesday with releases of Trade Balance data, and the Bank of Canada’s Rate Statement and Overnight Rate. On Friday we will get Employment Change and Unemployment Rate data.
Australian Dollar
It will be an important and busy week for the Aussie, starting on Monday with a release of Retail Sales data. On Tuesday we will get the RBA Rate Statement and Cash Rate, followed by the usual Press Conference. On Wednesday there will be a release of GDP data, while Thursday will see Trade Balance numbers.
Japanese Yen
It will be a quiet week for the Yen, with nothing due except a minor speech from the Governor of the Bank of Japan on Monday.