Monday starts off quietly with no significant scheduled economic events, but the FX market will watch for any new developments regarding the conflict in the Middle East.
Monday starts off quietly with no significant scheduled economic events, but the FX market will watch for any new developments regarding the conflict in the Middle East. On Tuesday, the focus will be on the RBA monetary policy announcement in Australia, while in the U.S., key releases will include the ISM services PMI, JOLTS job openings and two new home sales prints as last month’s publication was skipped due to the U.S. government shutdown.
New Zealand will report employment change q/q and the unemployment rate on Wednesday and the U.S. will release unemployment claims data the following day. Also on Thursday, the U.K. will hold local elections, which could provide a glimpse into the changing political landscape and future challenges for the governing Labor party. On Friday, Canada will publish its employment change figures and the unemployment rate, while the U.S. will release its average hourly earnings m/m, non-farm employment change, and the unemployment rate, along with preliminary UoM consumer sentiment and inflation expectations.
Several FOMC members are expected to deliver remarks throughout the week. At this week’s RBA meeting, a 25 bps rate hike is expected, which would take the cash rate to 4.35%. This would be in line with market expectations and near the upper end of the forecast range.