The week ahead ( 3 – 7 July ) : Eyes on Employment numbers again

3 Jul 2017 02:13 AM

With the start of the second half of 2017, several important economic data will be released this week and are likely to have a significant impact on market movements.

Australian Interest Rate Decision
The RBA is due to meet on early hours of Tuesday and most expectations that the bank to keep interest rates unchanged at 1.50% for the 10th consecutive meeting. Retail sales data for May are expected to rise by 0.3% and the trade balance is expected to widen to 1.11 billion dollars in May.

UK Purchasing Managers Indexes
The markets are paying special attention to British purchasing managers' data as they give a clear picture of the most important sectors in the country. The June Purchasing Managers' data is expected to be released in the manufacturing sector and is expected to expand by 56.4 points, the service sector is expected to expand by 53.5 Point, and the construction sector is expected to expand by about 55.2 points.
Markets will also be watching Mark Carney, governor of the BOE, who will speak twice this week to come up with any hints about the future of monetary policy and whether there will be tightening policy anytime soon.

Canadian Employment Data
Will be released on Friday. The Canadian labor market is expected to continue adding jobs for the eleventh month in a row, following the addition of 54.5K jobs in May. Unemployment is also expected to stabilize at 6.6%.

US Employment Data
A number of important economic data will be released In the US this week, as the Institute of Supply Management will issue Manufacturing & Non-manufacturing PMI figures. On Friday, markets will be looking towards the non-farm payrolls and whether the labor market will continue to provide enough figures to continue tightening policy. The US economy is expected to add about 180,000 jobs, unemployment is expected to stabilize at 4.3% and the average wage to rise by 0.3% in June. Private sector employment figures will be released on Thursday.

The markets will also be on Wednesday with the minutes of the Fed meeting that held on June 14. The Fed will also release the monetary policy report on Friday before Janet Yellen, the Fed's governor testifies before the Senate, usually it comes along with the testimony, this time it will be published early.

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