We are right at the start of a the first new month in a new year and as such we can expect the markets to really come back to life this week, with a lot of money flows and major positioning, so it is probably going to be a great time to trade. There is a meaningful amount of crucial economic data releases due this week. Although it is not an extremely busy schedule, it is dominated by the crucial USD-related FOMC meeting minutes AND the Nonfarm Payrolls, which is an unusual combination, so it is going to be a bumped week for the USD and that means a bumper week for the Forex market as a whole!
The big days are going to be Wednesday and Friday. We will get the FOMC Meeting Minutes on the Wednesday as well as a few other crucial economic items for the USD. Then on Friday the Non-Farms will come out. There are a few other items due during this second half of the week too, so it should be a very busy time.
U.S. Dollar
The greenback’s week begins on Monday with a release of ISM Manufacturing PMI data. Wednesday will see the release of several items: the ADP Non-Farm Employment Change, Trade Balance and ISM Non-Manufacturing PMI, before the day concludes with the all-important FOMC Meeting Minutes. Thursday will see the arrival of Unemployment Claims numbers. On Friday we will get Average Hourly Earnings, the Non-Farm Employment Change and the Unemployment Rate. Overall, a bumper week for the USD.
Canadian Dollar
Wednesday will see the release of Trade Balance data. On Thursday the Governor of the Bank of Canada will be speaking at a breakfast meeting but his comments probably won’t move the market. This week’s big day for the Loonie comes on Friday with Building Permits, Employment Change and Unemployment Rate data all being released.
British Pound
Monday will see the release of Manufacturing PMI data. The following day – Tuesday – we will get the Construction PMI release. The Pound’s week will conclude on Wednesday when Services PMI data is released.
Australian Dollar
There is nothing much for the Aussie until the last two days of the week. Thursday will see the release of Building Approvals and Trade Balance data, and then on the following day, Friday, we will get Retail Sales numbers.
New Zealand Dollar
Monday is a public holiday in New Zealand. The following day, Tuesday, we expect the GDT Price Index to be released.