A look at the week ahead for markets

March 5, 2018

Another data-filled week for markets, with a smorgasbord of announcements from around the world set to keep investors watching closely.

The EUR/USD strengthened during Friday’s trading session as investors flocked to the Euro in the wake of possible trade wars with the US and trading partners over Donald Trump’s idea of adding tariffs to some imported products. It began the session at lows of $1.22746 before adding value steadily throughout the night. The pair dipped in the last hour of trading, closing at $1.23149. In early trading this morning, it has started strongly, currently trading at $1.23404. The GBP/USD had a more volatile night on Friday, hitting a session high of $1.38161 midway through the session before dropping away to session lows of $1.37552. It rebounded from that point to recover most of its losses where it is currently trading at $1.37992.

The Dow ended the week with a reasonably flat day of trading, settling a down from the volatility that plagued it earlier in the week. It reached session highs of 24617.16 early, but then it dropped off until it hit session lows of 24,201.50. It then regained most of those losses, currently trading at 24,532.40. The Dax weakened throughout most of the session as the Dow’s woes and the Italian election weighing heavily. It began the session at highs of 12,103.47, but then dropped away to hit session lows of 11,875.22. It recovered part of its losses, currently trading at 12,001.30.

The week ahead is shaping to be a big one, with plenty of vital economic information set for release that can cause some waves for markets. The most crucial events for the week are the US Non-Farm Payroll data on Friday and the ECB’s Minimum Bid Rate on Thursday. Both are important to keep an eye on. The data set for release today and the most significant data for the rest of the week includes:

Today – Australian AIG Services Index, MI Inflation Gauge, Building Approvals, Company Operating Profits and ANZ Job Advertisements, New Zealand ANZ Commodity Prices, China Caixin Services PMI, Italian & Spanish Services PMIs, European, German & French Final Services PMIs, European Sentix Investor Confidence, European Retail Sales, UK Services PMI, US Final Services PMI & ISM Non-Manufacturing PMI, FOMC Member Randal Quarles speaks

Tuesday – Australian Current Account, Retail Sales, Cash Rate & RBA Rate Statement

Wednesday – UK MPC Member Andy Haldane, RBA Governor Philip Lowe & FOMC Member William Dudley speak, US ADP Non-Farm Employment Change, Canadian Trade Balance, Overnight & BoC Rate Statement

Thursday – Australian Trade Balance, ECB Press Conference, BoC Governor Stephen Poloz speaks

Friday – BoJ Policy Rate, Monetary Policy Statement & Press Conference, UK Manufacturing Production, Canadian Employment Change & Unemployment Rate, US Average Hourly Earnings & Unemployment Rate


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