mask Week Ahead | Will Janet Yellen provide additional support to the Greenback?

10/ 07/ 2017

Week Ahead | Will Janet Yellen provide additional support to the Greenback?

10th July 2017 - 15th July 2017

Monday

  • EU Germany Trade Balance
  • US Labor Market Conditions Index, Consumer Credit Change
  • GBP BRC Like-For- Like Retail Sales

Early in the day, Trade Balance from Germany will be release, if a steady demand in exchange for German exports is seen, that would turn into a positive growth in the trade balance, and that should be positive for the EUR. Followed by US Labor Market Conditions which is the primary source of common variation among 19 labor market indicators; Consumer Credit Change will also be published later in the day. Day will end in report coming from UK which measures changes in the actual value of retail sales from participating companies with invaluable management information on a regular and reliable basis. It shows the performance of the retail sector.

Tuesday

  • GBP Inflation Report Hearings
  • FOMC Member Brainard Speech

The day will begin with the House of Commons to examine the expenditure, administration and policy of HM Treasury, HM Revenue & Customs, and associated public bodies, including the Bank of England and the Financial Services Authority. Fed speak from various others on the Committee will be of interest too. The day will end at the Fed Governor Brainard’s remarks on monetary policy that will be closely monitored too.
As her endorsement in the past of a rate hike provided a confirmation for markets that a rate was coming

Wednesday

  • GBP Claimant Count Change, ILO Unemployment Rate
  • EU Industrial Production
  • BOC Monetary Policy Report, Interest Rate Decision, Rate Statement & Press Conference
  • US Fed’s Beige Book

Early this day Claimant Count Change from UK will be released that is a monthly measure of unemployment in the UK. It indicates the health of the UK labor market followed by Industrial Production that will shows the volume of production of Industries such as factories and manufacturing. Up trend is regarded as inflationary which may anticipate interest rates to rise. This will be followed by the BoC as they publish its rate statement with the BoC Governor Stephen Poloz giving a press conference. Lastly, Yellen will have released its prepared statement that will be shadowed by Q&A Session. Market impact will likely be stronger on Wednesday.

Thursday

  • EU Consumer Price Index
  • US Initial Jobless Claims, Fed’s Yellen Testifies, Monthly Budget Statement, Producer Price Index

The day is to be closely monitored, as Fed Chair Janet Yellen will be giving her semiannual monetary policy report to the US House Financial Services Committee and to the Senate Banking Committee. FOMC members will be speaking during the week reiterating the high probability of another rate hike and the imminent start of the central bank’s balance sheet reduction sooner rather than later after releasing the Consumer Price Index from EU that measures the average price change for all goods and services purchased by households for consumption purposes. CPI is the main indicator to measure inflation and changes in purchasing trends that will give some volatility to the EUR.

Friday

  • EU Trade Balance
  • US Retail Sales, Consumer Price Index & Industrial Production

Early in the day report coming from European Union will release its Trade Balance, it is 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 for the EUR followed by US retail sales and inflation data will be release as a potential obstacle for dollar gains as inflation has been subdued as evidenced by the wage component of the jobs report.