It was another very busy week for financial markets last week as the ongoing conflict in the Middle East continued to weigh on investor sentiment, as did continued concerns over tech company valuations, which saw some huge swings in the market.
On top of that, we saw massive intervention in the yen market by both the Bank of Japan and the Federal Reserve, as well as interest rate ‘holds’ by the Fed, the Bank of England and the Bank of Japan.
This week does look quieter on the macroeconomic calendar; however, there is a big focus on employment data, with releases scheduled across some key jurisdictions, including the big Non-Farm update out of the States. Again, major updates are expected on the geopolitical front out of Washington and the Middle East, so the week is likely to be anything but quiet as the trading days progress.
Here is our usual day-by-day breakdown of the major risk events this week:
Markets are again expecting a lively start to the week as investors react to geopolitical updates from the weekend. On the event calendar, it is relatively quiet, although we do have key inflation data out of Switzerland in the London session and the first tier 1 data out of the US for the week in the form of the ISM Manufacturing PMI numbers.
It’s another relatively quiet day on the macroeconomic calendar on Tuesday, with little on the cards in both the Asian and London sessions. The first of four major US employment updates should gain strong attention in the New York session, with the JOLTS Job Openings data due out.
Wednesday is a busier day in terms of scheduled events, and things start early in the day with key New Zealand employment numbers due out early in the Asian session. The London session sees a raft of Final Services PMI data, while the New York session has more employment data out, this time the ADP Non-Farm Employment Change, followed by the ISM Services PMI figures.
It’s a quiet day on the calendar on Thursday, with nothing scheduled in the first two trading sessions of the day and just the usual Weekly Unemployment Claims number out of the US in the New York session.
It is Non-Farms day on Friday, and it looks like being set up for a classic. There is nothing on the schedule again in the Asian and London sessions, so markets are expected to be relatively quiet—geopolitical updates excepted—ahead of the big US employment figures early in the New York day. Canadian employment data is due out at the same time, which will further complicate things for CAD traders, and Ivey PMI numbers are due out later in the session. However, as always, expect the major US numbers to dictate sentiment into the weekend.
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