From the first day of the week, the main focus will be on Chinese news. The country extends the vacation, foreign companies will continue to close production and offices, evacuate top management.
The decision of the Reserve Bank of Australia at the interest rate will be the main event of the second day of the week. Along with this news, statistics will be published: inflation in South Korea, permits for the construction of new houses in New Zealand, an auction of government bonds of Japan will be held. There is a high probability that this news will come out in a positive way, ensuring the growth of indices and national currencies. Australia’s economy has not suffered as much from fires as expected, the Bank of Japan may raise bond rates, and Korean inflation may exceed 1%.
Positive can spread to European markets, which will appear without important news. This may contribute to the euro if Italy does not show deflation – the country cannot cope with the growth of public debt.
The British pound has every chance to gain a foothold in the revitalization of the construction sector, the industry is showing positive results for the second month in a row.
These trends will be tested by American statistics – an increase in industrial orders is expected, which may lead to demand for dollars.
Important statistics will be saturated with the last day of the week. Trends in Asian currencies will determine the indicators of household spending in Japan, which can strengthen the yen, as demonstrated by rising indices. The Australian dollar will become dependent on the monetary future monetary policy of the RBA, published in the Protocols. The direction of the New Zealand dollar will determine the outlook for the expected quarterly inflation.
Demand for the euro will stimulate Germany’s trade balance, but a positive effect may be “lubricated” by a drop in industrial production. In this case, you need to look at the data on France’s employment, the third EU economy can demonstrate an increase in jobs.
Housing prices in the UK could lead to a sagging pound, first sagging after two months of growth. The country has officially left the EU and now negative news is perceived by traders with increased sensitivity.
The final exchange rates at the close of the trading session will be determined by the important economic indicators of the US labor market – employment, hourly wage, unemployment rate.