The Week Ahead – Central Bank Chatter, Economic Data, and COVID-19 in Focus
On the Macro
It’s a particularly busy week ahead on the economic calendar, with 78 stats in focus in the week ending 3rd December. In the week prior, 49 stats had been in focus.
For the Dollar:
Early in the week, consumer confidence will be in focus ahead of ADP nonfarm and manufacturing data on Wednesday.
Expect the consumer confidence and ADP numbers to draw the greatest interest.
On Thursday, weekly jobless claims will also influence ahead of a busy end to the week.
Nonfarm payrolls and ISM non-manufacturing PMI figures wrap things up on Friday.
On the monetary policy front, FED Chair Powell and FOMC member chatter will also be in focus. The FED Chair is scheduled to deliver testimony in the 1st half of the week, which will be key with the latest new COVID-19 strain.
In the week, the U.S Dollar Index rose by 0.06% to 96.089.
For the EUR:
French consumer spending and German unemployment figures get things going on Tuesday.
While consumption is key, expect Germany’s unemployment data to have a greater impact.
On Wednesday, German retail sales and manufacturing sector PMIs will be in focus.
At the end of the week, service sector PMIs and Euro area retail sales will also influence.
While the stats will draw plenty of interest, prelim November inflation figures for the Eurozone and member states will likely be key.
Away from the economic calendar, any new COVID-19 lockdown measures would likely overshadow any upbeat numbers.
For the week, the EUR rose by 0.24% to $1.1317.
For the Pound:
It’s a relatively quiet week ahead on the economic calendar.
Finalized private sector PMIs for November will be in focus. Expect any revisions to the services PMI to have the greatest impact on the Pound.
On the monetary policy front, central bank chatter will also provide direction. BoE Gov. Bailey is scheduled to speak on Wednesday.
The Pound ended the week down by 0.85% to $1.3337.
For the Loonie:
It’s relatively quiet week ahead on the economic calendar.
GDP figures will provide direction on Tuesday ahead of employment figures on Friday.
Away from the economic calendar, however, expect crude oil inventories and prices to influence. OPEC’s meeting in the week and sentiment towards consumption amidst the latest COVID-19 lockdown measures will drive crude oil prices.
The Loonie ended the week down 1.19% to C$1.2791 against the U.S Dollar.
Out of Asia
For the Aussie Dollar:
It’s a busy week ahead. Early in the week, company gross operating profits and private sector credit data will be in focus.
For the week, however, the key stats will be GDP numbers on Wednesday ahead of trade data on Thursday.
The Aussie Dollar ended the week down by 1.55 to $0.7123.
For the Kiwi Dollar:
It’s a quiet week ahead.
Economic data is limited to business confidence figures due out on Tuesday. With lockdown measures eased, the markets will be looking for a recovery following the decline in October.
The latest COVID-19 news from Europe, however, could weigh on sentiment and more heavily on the Kiwi.
The Kiwi Dollar ended the week down by 2.60% to $0.6822.
For the Japanese Yen:
Retail sales and prelim industrial production figures will be in focus early in the week.
In the 2nd half of the week, finalized private sector PMIs for November will also draw interest.
Ultimately, however, COVID-19 news updates will continue to be the key driver for the Japanese Yen.
The Japanese Yen rose by 0.54% to ¥113.380 against the U.S Dollar.
Out of China
It’s a busy week ahead on the economic calendar.
On Tuesday, NBS manufacturing PMI numbers will be in focus ahead of the all-important Caixin Manufacturing PMI on Wednesday.
While the headline figure will draw plenty of interest, new orders, delivery times, and input and output price trends will likely be the main areas of focus.
On Friday, the Services PMI will also draw interest, however.
The Chinese Yuan ended the week down by 0.10% to CNY6.3933 against the U.S Dollar.
Nothing new to consider in the week ahead, with China and Capitol Hill continuing to be the key areas of focus.
News of rising new COVID-19 cases and the talk of lockdown measures will influence. Key, however, will be news updates on the new COVID-19 strain and any government chatter on border controls.