Important Events Lined-up In The Upcoming Week

Last week, the US Dollar Index (I.USDX) ended on a positive note, gaining by over 0.8%, as tension over a possible US military action against Syria sparked safe-haven flows. Also, US second-quarter GDP growth, that was revised higher to 2.5% from a previous estimate of 1.7%, further benefited the US Dollar.

Along-with the geopolitical tensions in Syria, investors will now focus on top-tier economic events lined up in the up-coming week’s US economic calendar, including of the most critical and closely watched US Non-Farm Payrolls data.

US Monthly Jobs Report – Labor market conditions would play a very important role in the Fed Reserve’s decision to reduce the pace of its $85 billion monthly asset purchases program and hence, preceding the two-day FOMC meet on September 17 and 18, monthly jobs report for August will remain the spotlight of this week’s economic events from the US. In the month of July, non-farm payrolls showed, lower than expected, addition of 162,000 jobs. The unemployment rate, however, dropped below 7.5% for the first time after December 2008. Analysts are now expecting the non-farm payrolls, scheduled for release on Friday, to show a gains of 181,000 jobs for the month of August. Meanwhile, the unemployment rate for August is expected to hold steady at 7.4%.

ISM PMI Data – US economic calendar starts the week with ISM Manufacturing PMI, scheduled for release on Tuesday. After three month of weaker-than-expected reading, the Institute for Supply Management’s (ISM) manufacturing index for July jumped to 55.4 compared to 50.9 in June. For the month of August, the ISM manufacturing index is expected to show a small drop to 54.2. Meanwhile, the ISM non-manufacturing (Services) PMI, scheduled for release on Thursday, is also anticipated to register a slight drop to 55.2 for August after rising to 56.0 in July.

Other important economic data from the US, scheduled for release in this week, include Trade data for the month of July, scheduled on Wednesday and ADP report that shows the number of private jobs created during August, scheduled on Thursday. After narrowing to $34.2 billion in the month of June, US trade deficit for the month of July is expected to rise to $38.6 billion.

 

Central Bank Monetary Policy Decisions

Monetary policy decision from various major central banks from across the globe is also on investors watch-list for this week.

A busy week of central monetary policy decision announcements kicks off with the Reserve Bank of Australia (RBA) on Tuesday. In the month of August, RBA decided to cut its key policy rate by 25 basis points (0.25%) to a record low 2.5%. This time, economists are widely expecting RBA to hold its key lending rate unchanged.

The Bank of Canada, is scheduled to announce its monetary policy decision on Wednesday and is expected to maintain its benchmark interest rates at 1.0%.

On Thursday, the Bank of Japan (BoJ), the Bank of England (BoE) and European Central Bank (ECB) are scheduled to announce their monetary policy decisions.

Although no major policy action is expected from the BoJ, but in the context of recent economic data from the Japan, commentary about the economic conditions that influenced BoJ’s decision will be closely scrutinized to see if the central bank is willing to further expand its easing measures.

Further, considering the recent upbeat economic indicators, signaling solid economic recovery both in the UK and Euro-Zone, markets are expecting both BoE and ECB to leave their monetary policies unchanged. Investors will also focus on the ECB press conference where ECB President Mario Draghi’s comments usually drives the Euro significantly.

Other Important Data Releases

Here is the list of other major market moving events in the upcoming week’s global economic calendar.

Important economic data featuring this week’s Australian economic calendar includes Retail sales, schedule on Tuesday; GDP data, scheduled for release on Wednesday; and Trade Balance data, scheduled on Thursday.

This week’s UK economic calendar features August PMI readings and Manufacturing production data for the month of July. Construction PMI is scheduled for release on Tuesday and Wednesday’s key event include Services PMI. Release on Manufacturing production on Friday concludes this week’s UK economic calendar.

• With the on-going tension surrounding Syria and lower expectation of any policy action from various central banks, the US Dollar is likely to build on its recent strength unless there is some big disappointment from US jobs report on Friday, the biggest economic event of the week.

 

• Original Article: Admiral Markets and hyper link Admiral Markets with http://www.admiralmarkets.com/