Week Ahead
Monday On Monday, markets will remain closed in most G10 nations, in celebration of Easter Monday. Nevertheless, during the US session NAHB Housing Market Index will be released which presents home sales and expected home buildings in the future indicating housing market trend in the United States. Tuesday On Tuesday, during the Asian session, the RBA will release the minutes from its April policy meeting, where the Bank remained on hold, and shifted to a somewhat more dovish tone. On the other end, reports coming from US will be released which includes Building Permits and Housing Change and Starts which implies the movement of corporate investments. It tends to cause some volatility to the USD. The Industrial Production released by the Board of Governors of the Federal Reserve shows the volume of production of US industries such as factories and manufacturing. Up trend is regarded as inflationary which may anticipate interest rates to rise. Wednesday The trade balance released by the Eurostat is a balance between exports and imports of total goods and services. A positive value shows trade surplus, while a negative value shows trade deficit. It is an event that generates some volatility in EUR. USD Fed Beige Book are also due this day which indicates reports on the current US economic situation. The survey gives a picture of the overall US economic growth. Thursday The producer price index released by the statistisches Bundesamt Deutschland measures the average changes in prices in the German primary markets. Changes in the PPI are widely followed as an indicator of commodity inflation. The initial jobless claims released by the US Department of Labor is a measure of number of people filing first time claims for state unemployment insurance. Friday On Friday, we get the preliminary Markit manufacturing and services PMIs for April from several European nations and the Eurozone as a whole. Most of these indices are expected to tick down, but to remain at very healthy levels. Even though these are likely to be more pleasant news for ECB policymakers, we think that they are unlikely to lead to a material change in the Bank’s dovish rhetoric, at least not at the upcoming meeting in late April. The day will end with US data session where Market Manufacturing, Markit PMI Composite & Market PMI Composite will be released.
