Russian-Ukrainian conflict is influencing every economic aspect…
5 important events this week will bring us!
- RBA rate statement (Tue, 7:30 MT (4:30 GMT) time) – We anticipate the Reserve bank of Australia to keep the interest rate unchanged at 1%. At the same time, we will be looking for more hints on further decisions, as the market expects more rate cuts until the end of this year.
- Canada’s trade balance (Wed, 15:30 MT (12:30 GMT) time) – According to the forecasts, the difference in value between exported and imported goods will reach 0.2 billion. A higher level will boost the CAD.
- Inflation report hearings by the BOE (Wed, 16:15 MT (13:15 GMT) time) – If the Bank of England governor is hawkish, the GBP will be supported.
- BOC rate statement (Wed, 17:00 MT (14:00 GMT) time) – The interest rate is forecast to remain at 1.75%. The attention will be on the tone of the central bank. As usual, more hawkish comments will be appreciated by the CAD bulls.
- US jobs data (Fri, 15:30 MT (12:30 GMT) time) – The level of non-farm payrolls is expected to advance by 168 thousand jobs. At the same time, average hourly earnings will increase by 0.3% and the unemployment rate will likely remain at the same level of 3.7%. If the actual level of NFP and average hourly earnings are higher and the unemployment rate is lower than the forecasts, the USD will rise.
- The United States and China imposed new tariffs on each other’s goods. The 15% tariffs by the US on the part of $300 billion goods was confirmed by Donald Trump during the weekend. At the same time, the retaliatory step came from China with a target of $75 billion in US goods. It pulled the risk sentiment in the market down.
- The series of court hearings, which plan to stop the British PM Boris Johnson’s prorogation of the parliament may affect the strength of the British pound. The first one is due tomorrow, so pay attention to the news. It’s worth to remember that the parliament will return on Tuesday and opposition lawmakers are expected to propose legislation to force the government to postpone Brexit.
Last week was very interesting for the markets, as we saw the releases of the US Inflation and Disney’s earnings report. So let's see what we should await this week!
The volatility that the markets experienced last week promises the second tidal wave! What should your favorite assets anticipate during the first week of February?
The US Bureau of Economic Analysis will publish Core Personal Consumption Expenditures (PCE) on May 27 at 15:30 GMT+3.
The United States will publish the Preliminary GDP on Thursday, May 26, at 15:30 GMT+3.
The Reserve Bank of New Zealand will publish a monetary policy report and make an update on the interest rate on May 25, at 05:00 GMT+3.