In This Article:
On the Macro
It is a busy week ahead on the economic calendar, with stats 68 due out through the week ending May 6. In the week prior, 56 stats were in focus.
For the Dollar:
It is a big week ahead. On the economic data front, ISM survey PMIs will influence this Monday and Wednesday, with Wednesday’s ISM Non-Manufacturing PMI the main driver.
The US labor market will also be in focus, with the ADP nonfarm employment change figures and official nonfarm numbers due out on Wednesday and Friday.
The main event of the week, however, is the FED’s monetary policy decision. A larger than expected rate hike will spook the markets.
In the week ending April 29, 2022, the Dollar Spot Index surged by 1.72% to end the week at 102.959. In the week prior, the Index rose by 0.72% to 101.22.
For the EUR:
On Monday, manufacturing PMIs and German retail sales will draw interest ahead of German unemployment figures on Tuesday.
On Wednesday, the market attention will shift to service sector PMIs, German trade data, and Eurozone retail sales.
Over the remainder of the week, the German economy will remain in the spotlight. On Thursday, German factory orders are due out ahead of industrial production figures on Friday.
For the week, the EUR slumped by 2.27% to $1.0545. In the previous week, the EUR fell by 0.19% to $1.0790.
For the Pound:
It is a relatively quiet week, with economic data limited to finalized private sector PMI numbers. Expect any revisions to the services PMI to have a greater influence.
Following last week’s tumble, however, the Bank of England monetary policy will be the Pound’s key driver.
In the week, the Pound tumbled by 2.07% to end the week at $1.2573. In the week prior, the Pound slid by 1.69% to $1.2839.
For the Loonie:
Mid-week, trade data will draw interest ahead of employment figures due out on Friday.
On Friday, Ivey PMI numbers for April should have a muted impact on the Loonie.
In the week ending April-29, the Loonie slid by 1.09 to C$1.2848 against the Greenback. In the week prior, the Loonie fell by 0.79% to C$1.2710.
From the Asia Pacific
For the Aussie Dollar:
It is a busy week ahead. Key stats include manufacturing numbers on Monday ahead of retail sales and trade data on Wednesday and Thursday.
While the stats will influence, the RBA monetary policy decision and rate statement will be the key drivers. A larger-than-expected rate hike or the talk of a more aggressive rate path trajectory would support an Aussie Dollar breakout.
At the end of the week, the RBA will also release its Statement on Monetary Policy.
In the week, the Aussie Dollar tumbled by 2.53% to $0.7061.