TABLE OF CONTENTS:
This past weak had several high impact releases that will probably be a driving force in the currency markets this coming week. Equities also rose this past Friday after the Non Farm Payroll report showed gains in the jobs sector. The NFP figure this month was 255K way high from the expected 180K. Unemployment in the U.S remained constant at 4.9%. Good jobs figures also fueled the US dollar rise putting an end to the oil surge caused by poor US inventories data. The strong dollar is expected to weaken other commodities denominated in the dollar as well and hence the commodities market will be of great interest this coming week.
With the residual effects of the past week’s economic events shaping the markets, this coming week has very few major events, on the center stage being the US dollar and the Reserve Bank of New Zealand.
Below will be the main highlights for the week;
US Crude Inventories data: 10 August, Wednesday, 14.30 GMT. Last week saw crude inventories increase by 1.413M barrels against the forecast that they would decline. This figure is expected to drop this week with the major markets to watch being WTI and Brent.
New Zealand interest rates: 10 August, Wednesday, 21.00 GMT. The Reserve Bank of New Zealand is expected to cut its rates from 2.25% to 2% this month. This rate remained unchanged in June’s interest rate decision.
US Initial Jobless Claims: 11 August, Thursday, 12.30 GMT. Last week’s jobless claims rose from 266K to 269K, however, this week’s data is expected to show a fall in the figures to 265K. This event will influence dollar crosses as well as US equities.
German GDP: 12 August, Friday, 6.00 GMT. This coming week, the German GDP will be the main event influencing indices in the Eurozone as well as Euro crosses. The first quarter of this year saw the German economy grow by 0.7% and is expected to continue the expansion with a 0.3% growth this second quarter.
U.S Retail Sales: 12 August, Friday, 12.30 GMT. Total receipts made by retail stores in the US are expected to gain by 0.4% in July after a previous gain of 0.6% in June.
You can view all the events scheduled this coming week here in Economic Calendar