On the economic data front, ADP nonfarm payrolls and JOLTs job openings will draw interest on Wednesday. While the ADP numbers influence, quit rates
On the economic data front, ADP nonfarm payrolls and JOLTs job openings will draw interest on Wednesday. While the ADP numbers influence, quit rates from the JOLTs job openings will give the markets a sense of how the labor market feels about labor market conditions.
On Friday, the market focus will shift to the February Jobs Report. Another jump in nonfarm payrolls and an unexpected fall in unemployment would spook investors. Economists forecast the US unemployment rate to rise from 3.4% to 3.5%.
With the US labor market in focus, Fed Chair Powell will give testimony on Tuesday and Wednesday. A shift in focus from his post-FOMC policy decision speech to a more hawkish posture would test the appetite for riskier assets in the first half of the week.
The markets are hoping for a 25-basis point rate hike in March, while the hawks begin pushing the idea of a 50-basis point move.
For the EUR:
It’s a quieter week but another significant week for the EUR.
The German economy will be in the spotlight in the first half of the week. On Tuesday, factory orders will draw interest ahead of retail sales and industrial production numbers on Wednesday.
On Wednesday, euro area GDP numbers for Q4 are also out. However, the finalized numbers should limit the impact on the EUR and the European equity markets.
Other stats include euro area retail sales (Mon) and finalized German inflation figures (Fri). Barring a marked deviation from forecasts, these should have a limited impact on the EUR and the European markets.
For the Pound:
It’s a busy week ahead for the pound.
However, investors will have to wait until Friday for the key stats of the week. GDP, industrial and manufacturing production, and trade data will be in focus.
After the better-than-expected private sector PMI numbers for February, the markets will be eyeing better-than-forecasted numbers to deliver Pound support.
For the Loonie:
It’s a big week ahead on the economic calendar for the Loonie. On Wednesday, trade data will be in focus ahead of employment numbers on Friday. While both sets of numbers will move the dial, the BoC interest rate decision will be the main event. An interest rate hike would catch the markets by surprise. Economists expect the BoC to stand pat this year.
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