mask The week ahead | Greenback tumbles on weak second quarter growth

31/ 07/ 2016

The week ahead | Greenback tumbles on weak second quarter growth

1st - 5th August

The euro gained some ground against the U.S. dollar on Friday, after the release of positive euro zone inflation data and as the Federal Reserve’s inaction at its latest policy meeting continued to dampen demand for the greenback. The dollar further dropped after the GDP data showed that the U.S. economy grew at a slower pace than expected in the second quarter, while the Japanese yen soared after the Bank of Japan’s stimulus plans under whelmed investors.

Monday 

China is to publish its official manufacturing and non-manufacturing PMIs and the Caixin manufacturing index. The U.K. is to release data on manufacturing activity. Later in the day, the U.S. Institute of Supply Management is to release data on manufacturing activity.

  • China Manufacturing PMI
  • Euro Manufacturing PMI
  • UK Manufacturing PMI
  • US Manufacturing PMI

Tuesday 

From Australia we will see the figures for the country imports and exports. The Reserve Bank of Australia will publish its interest rate decision. The U.K. is to release data on construction activity and the U.S. is to report on personal income and spending.

  • AUD Trade Balance
  • AUD RBA Rate Statement
  • GBP Construction PMI
  • US Personal income & spending

Wednesday 

We will see form China the Caixin service sector index and the U.K. is to release data on service sector activity. The U.S. is to release the monthly ADP nonfarm payrolls report, while the ISM will publish its non-manufacturing index.

  • China Services PMI
  • ECB Non-monetary policy
  • UK Services PMI
  • EUR Services PMI
  • US ADP Employment Change

Thursday 

On Thursday Australia will release data on monthly retail sales. The BoE is to announce its monetary policy decision and publish the minutes of its policy meeting. The central bank will also produce its quarterly inflation report. BoE Governor Mark Carney will address the financial press afterwards. The U.S. is to release data on initial jobless claims as well as factory orders.

  • Australia Retail Sales
  • UK BoE Monetary Policy 
  • USD initial Jobless Claims

Friday

The week will end with major reports, starting with the Reserve Bank of Australia monetary policy statement, which provides valuable insight into the bank's view of economic conditions and inflation. Canada will release its monthly employment report as well as data on the trade balance. The U.S. is to round up the week with the closely watched nonfarm payrolls report.

  • Australia Monetary Policy
  • Canada Employment report 
  • US Nonfarm Payrolls