19th March 2018 - 23rd March 2018
Quite a dull day to start the week, the only report that could move the markets would be G20 meetings of key finance, treasury, and central bank officials in Argentina to discuss key issues in the global economy. Traders should pay close attention to this event as it might bring a new dimension to the markets. On Tuesday, RBA minutes will give a full account of the policy discussion, including differences of view. They also record the votes of the individual members of the Committee followed by Inflation in the UK is stuck at 3%, the top end of the 1-3% target range and the BOE is still considering raising rates in May. The publication will certainly impact the decision later this week. On Wednesday, prior to the BoE decision, UK jobs and wage growth data will be reported which could have an impact on the central bank’s decision. From US, as markets struggle to find direction amid the push and pull of inflation, interest rates, economic growth, and the continuing specter of global trade wars, the busy week ahead will have many more potential volatility triggers that are poised to move currency prices. Foremost of these triggers will likely be the Fed’s highly anticipated FOMC rate decision, policy statement, economic projections, and press conference on Wednesday, presided over for the first time by new Fed Chair Jerome Powell. In January, Australia reported a small rise in employment, 16K, within expectations but below the levels seen in previous months. The unemployment rate stood at 5.5%. While the job market looks good, policymakers are becoming worried about slow rises in wages and household debt. A tightening of the labor market will help relieve these worries and push the Aussie higher. A gain of 20.3K positions is on the cards and the unemployment rate carries expectations for 5.5%. For sterling traders, the Bank of England decision will also be a major focus in the week ahead. This policy decision will occur around the same time as the March EU leaders summit is scheduled to begin, which will center around a potential Brexit transition deal. Though the BoE is not expected to raise interest rates on Thursday, a hawkish stance combined with any UK-positive news from the EU leaders summit could provide a boost for the pound. On Friday, The Retail Sales released by the Statistics Canada is a monthly data that shows all goods sold by retailers based on a sampling of retail stores of different types and sizes. The retail sales index is often taken as an indicator of consumer confidence. It shows the performance of the retail sector in the short term. Generally speaking, the positive economic growth anticipates bullish movements for the CAD. From US, Orders of durable goods serve as a measure of investment and feed into GDP. The last word of the week belongs to the housing sector. Sales of new homes trigger broader economic activity. In January, sales dropped to an annualized level of 593K.Monday
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