This week kicks off with data being released form Europe, the US and Canada. From Europe we have the release of the Flash Manufacturing and Services PMI`s which will show just how well Europe’s giants and the EU as a whole are positioned form the perspective of purchasing managers, who try and predict the future demand of products. Should the numbers show that they are more optimistic with a higher print for the figures, we would see the EUR appreciate against its counterparts and vice versa should we see worse than expected prints.
With the next FED meeting a key one with regards to the future of interest rates in the US, markets will scrutinize the speeches of today’s two speakers as they look for clues as to the FED`s thinking regarding rates. Should they strike bullish tones, we would see the USD appreciate across the board and vice versa should they strike dovish tones.
From Canada we have the release of the Whole Sales figures and Bank of Canadas Governor Poloz speaking. With last week’s more than 200 pips loss for the CAD against the USD, markets will be looking to see whether today’s release can reverse the tide. A better than expected print for Whole Sales or a hawkish speech by Poloz will see the Cad regain some of its composer as it takes back some of its recent losses. However, worse than expected data with a dovish tone by Poloz will see the CAD`s worries continue as the Canadian economy looks anything but stable.
Today’s key economic data is as follows:
- MPC Member Shafik Speaks
- French Flash Manufacturing PMI expected at 50.2
- French Flash Services PMI expected at 54.1
- German Flash Manufacturing PMI expected at 54.3
- German Flash Services PMI expected at 51.9
- Flash Manufacturing PMI expected at 52.7
- Flash Services PMI expected at 52.4
- FOMC Member Dudley Speaks
- FOMC Member Bullard Speaks
- Wholesale Sales m/m expected at 0.2%
- BOC Gov Poloz Speaks
- SNB Chairman Jordan Speaks