Labor market numbers also need consideration, with JOLTs Job Openings and ADP nonfarm employment change numbers out on Tuesday and Wednesday. After e
Labor market numbers also need consideration, with JOLTs Job Openings and ADP nonfarm employment change numbers out on Tuesday and Wednesday. After economic indicators from last week, tight labor market conditions would support a hawkish Fed outlook.
However, on Thursday, ISM Non-Manufacturing PMI numbers and jobless claims would need to support the Fed hawks.
The all-important US Jobs Report will wrap up a busy week on Friday. Wage growth, nonfarm payrolls, and the US unemployment rate will be focal points.
For the EUR:
It’s a busy start to the week for the EUR, with German retail sales, Eurozone inflation, and euro area GDP numbers kickstarting the week. We expect the Eurozone numbers to have more influence. With the ECB uncommitted to a September policy decision, sticky inflation and better-than-expected GDP numbers would support further interest rate hikes.
German employment numbers will also need consideration on Tuesday ahead of German trade and factory orders on Thursday and Friday.
Other stats include manufacturing and service PMI numbers for Italy and Spain and finalized numbers for France, Germany, and the Eurozone. The numbers from Italy and for the Eurozone will likely have the most impact.
For the Pound:
It is a big week for the Pound, with the Bank of England delivering its interest rate decision on Thursday. The markets are betting on a 25-basis point rate hike and forward guidance for one more hike before the year.
However, economic data is on the light side, with finalized July private sector PMI numbers out on Tuesday and Thursday. We expect revisions to the services PMI (Thurs) to have more impact.
With the economic calendar on the light side, investors should track BoE chatter throughout the week. BoE Governor Andrew Bailey (Thurs) and Chief Economist Huw Pill (Fri) are on the calendar to speak.
For the Loonie:
It is a quiet week. However, employment numbers will need consideration on Friday. A solid increase in employment would deliver Loonie support.
Other stats include Ivey PMI numbers for July that should have a limited impact on the Loonie. Market risk sentiment will influence. Private sector PMI numbers from China will need consideration.
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