The Week Ahead – Economic Data, Central Bank Chatter, and COVID-19 in Focus

On the Macro

It’s quieter week ahead on the economic calendar, with 46 stats in focus in the week ending 13^th August. In the week prior, 50 stats had also been in focus.

For the Dollar:

JOLT’s job openings for June get things going. With increased sensitivity to labor market numbers, expect interest in the June openings.

The focus will then shift to inflation and jobless claims on Thursday, with both sets of numbers key.

At the end of the week, consumer sentiment figures for August will also draw attention.

On the monetary policy front, expect plenty of sensitivity to any FOMC member chatter in the week.

In the week ending 6^th August, the Dollar Spot Index rose by 0.68% to 92.800.

For the EUR:

It’s a busy week on the economic data front.

German trade data for June will be in focus on Monday.

The focus will then shift to ZEW Economic Sentiment figures for Germany and the Eurozone on Tuesday.

In the 2^nd half of the week, industrial production and trade data for the Eurozone wrap things up.

Finalized inflation figures for France, Germany, and Italy are also out in the week but should have a muted impact on the markets.

For the week, the EUR fell by 0.91% to $1.1762.

For the Pound:

It’s a busy week ahead on the economic calendar.

2^nd quarter GDP, trade, industrial production, and manufacturing production figures are due out on Thursday.

Expect the GDP and production figures to be key.

With the number of daily COVID-19 cases in decline last week, a continued downtrend would also be positive for the Pound.

The Pound ended the week down by 0.23% to $1.3872.

For the Loonie:

It’s a particularly quiet week ahead on the economic calendar.

There were no material stats due out of Canada to provide the Loonie with direction.

A lack of stats will leave the Loonie in the hands of market risk sentiment and crude oil prices in the week.

The Loonie ended the week down 0.63% to C$1.2554 against the U.S Dollar.

Out of Asia

For the Aussie Dollar:

Business and consumer confidence figures will be the key stats in the 1^st half of the week.

The markets will be looking to assess the damage from fresh lockdowns on confidence.

At the end of the week, employment figures will also have plenty of influence on the Aussie Dollar.

The Aussie Dollar ended the week up by 0.16% to $0.7356.

For the Kiwi Dollar:

It’s a quiet week ahead. Business PMI figures at the end of the week will be the only numbers to consider.

Economic data from New Zealand has been impressive of late. Upbeat numbers would give the Kiwi a boost.

The Kiwi Dollar ended the week up by 0.52% to $0.7010.

For the Japanese Yen:

It’s a particularly quiet week ahead, with no material stats for the markets to consider.

A lack of stats will leave market risk sentiment and yield differentials as the key drivers.

The Japanese Yen fell by 0.48% to ¥110.250 against the U.S Dollar.

Out of China

It’s a relatively quiet week ahead. Inflation figures for July will be in focus at the start of the week.

The markets will be looking for softer inflationary pressures. Expect plenty of interest in the numbers on Monday.

From the weekend, while the trade data will set the tone going into the week.

The Chinese Yuan ended the week down by 0.34% to CNY6.4831 against the U.S Dollar.

Geo-Politics

Iran and China continue to be the main areas of interest for the markets. News updates from the Middle East, in particular, will need continued monitoring…