I had expected last week that the market would be more volatile and it came to pass, with the market growing more convinced that the U.S. Federal Reserve will not implement a rate hike next September. Additionally, there was a huge sell-off in the U.S. stock market at the end of the week, with the market suffering its largest one-day fall since 2011. Therefore there may still be some turbulence as the week begins in the Forex market, but overall it looks like this week is going to be much quieter. There is little data scheduled for release and no anticipated Central Bank statements or actions. The highlight of the week will probably arrive on Thursday with U.S. data concerning GDP and Unemployment which will be closely watched as it pertains to the Federal Reserve’s data-driven approach to a possible rate hike.
U.S. Dollar
It will be a moderately busy week for the greenback with a high-impact event scheduled for every day of the week except Monday. Tuesday will see the release of CB Consumer Confidence data. On Wednesday we will get Core Durable Goods Orders numbers. Thursday will see the release of Preliminary GDP and Unemployment Claims data, followed on Friday by Goods Trade Balance. While the market is closed on Saturday, FOMC Member Fischer will be speaking at a panel discussion about global inflation dynamics.
Australian Dollar
On Wednesday the Governor of the Reserve Bank of Australia will be speaking at a summit. Thursday will see the release of Private Capital Expenditure data.
New Zealand Dollar
A fairly quiet week for the Kiwi, with Inflation Expectations data due on Tuesday, followed by a release of Trade Balance due on Wednesday.
British Pound
There is nothing due for the Pound until Friday when there will be a release of Second Estimate GDP data, followed on Saturday by the Governor of the Bank of England speaking at a panel discussion about global inflation dynamics.
Euro
A very quiet week for the Euro is expected, with nothing scheduled except for German IFO Business Climate data on Tuesday.
