The Week Ahead – Non-Farm Payrolls, RBA, Yellen and Draghi

As we enter the first week of October, a busy week is upon us with important economic events that might add volatility to markets.

Here are the main economic events of the upcoming week:

US Non-Farm Payrolls

The crucial US non-farm payrolls will be released on Friday at 12:30 GMT. Expectations are for an increase of just 100,000, down from 156,000 new jobs in August.

Investors will also focus on the employment rate that is expected to remain unchanged at 4.4. Moreover and the average hourly earnings that are expected to rise to 0.2% from 0.1% a month earlier.

Fed Chair Janet Yellen Speech

After the Hawkish comments by the Fed chair Janet Yellen last week, investors will be watching Yellen’s speech on Wednesday at 19:15 GMT at the Community Banking in the 21st Century Conference in St. Louis. Yellen’s comments might conclude whether the Fed raises rates on December.

According to CME Fed Watch Tool, December rate hike odds stand at 76.4% after rising significantly during the previous week.

ECB President Mario Draghi Speaks

As Mario Draghi signaled last month that the ECB will tighten its stimulus program from October, the ECB President will speak on Wednesday at 17:15 GMT. In addition, the ECB will release its meeting minutes. Investors will closely watch Draghi’s comments to get hints of the central bank’s next steps.

The Euro was under pressure against the U.S. Dollar during the previous week as investors reacted to the German election results. The EUR/USD finished the week at 1.1814, down 0.0133 or -1.11%.

Reserve Bank of Australia Interest Rate Decision

The Reserve Bank of Australia will announce its rate decision on Tuesday at 4:30 GMT. Analysts consensus is for the central bank to keep rates unchanged at 1.5% and hold its policy stance.

Investors will keep an eye on any comments from RBA members as they wish to predict whether the AUD will continue its recent drop or a shift in trend is ahead of us.

Check out our real-time Economic Calendar