Week Ahead | A Slow Start to 2018 with Focus on US NFP

2nd January 2018 - 5th January 2018

Tuesday

• EUR Markit Manufacturing PMI
• GBP Markit manufacturing PMI
• USD Markit Manufacturing PMI

First trading day of the year brings us only mid tied reports. In particular, Euro zone Markit Manufacturing PMI and US Markit Manufacturing PMI will be closely watched for any fresh impetus. Furthermore, UK PMI manufacturing will also be released which is expected to drop to 57.9 in December, down from 58.2.

Wednesday

• EUR Unemployment Rate and Change
• US ISM Prices Paid, ISM Manufacturing PMI & FOMC Minutes

By Mid-day we will see Germany releasing Unemployment rate which shows , in a percent basis, the amount of unemployed people in Germany. This will be followed by Unemployment Change which is a measure of the absolute change in the number of unemployed people in Germany.

The latter half of the day belongs to US with ISM prices figures and FOMC minutes. Apart from ISM Figures the FOMC Minutes will be watched closely by markets which outlines economic conditions and the factors affecting the monetary policy decision.

Thursday

• EUR Markit Services PMI & Markit PMI Composite
• GBP Consumer Credit & Mortgage Approvals
• USD ADP Employment Change, Initial Jobless Claims, Markit Services PMI

A rather busy day with several mid-tier reports been released from Euro zone, UK and USA. First up will be market services and Markit PMI composite figures from Euro zone which are related to economic conditions in Euro zone . These will be followed by Consumer Credit and Mortgage Approvals from UK are data related to Consumer Consumers borrowing credit and number and approved mortgages .

The final half will be full of US data, connected to US labor market. Positive data could support Fridays Non-Farm Payroll and could strengthen the Dollar in the short term.

Friday

• EUR Retail Sales & Consumer Price Index
• US Nonfarm Payroll, Unemployment Rate, Trade Balance, Speeches from FOMC Members & Factory Orders
• CAD Unemployment Rate & Net Change in Employment

Another busy day follows with US Non-farm payrolls been the highlight of the day. Early half of the day belongs to Euro zone as we will Retail Sales and CPI figures been released. Then comes the all important US reports which will be closely watched by investors for any signs of dollar resurgence.

Specifically US Non-Farm Payrolls could be the decisive factor for the Greenback to end the 1st week of 2018 on a strong note. Speeches from few key FOMC members are also scheduled later in the evening. For the Loonie, Key data such as Unemployment Rate and Net Change in Employment figures could be decisive in the short term.