Highlights
After softer-than-expected US jobs data, Canada's employment report on Friday will show whether labor conditions are easing further (modest jobs growth and a slight uptick in unemployment expected) to help lower inflation, a key factor for the Bank of Canada to decide on its first interest rate cut during the current cycle, which is expected on June 5, ahead of a possible rate reduction by the Federal Reserve later this year (in September?). The Reserve Bank of Australia is widely expected to leave its policy rate unchanged on Tuesday mid easing but still high inflation.
On Monday, choppy trading is likely to continue in the dollar/yen forex market as the Japanese markets are closed at the end of the Golden Week holidays. What is believed to be the Ministry of Finance's stealth dollar selling intervention has pushed the dollar/yen rate back to 153 yen from 160 yen.
No major revisions are expected to the April purchasing managers indexes for the services sector in Europe, leaving the PMIs at 50.5 in France (the first growth since May 2023, up from 48.3 in March), 53.3 in Germany (a 10-month high, up from 50.1) and 52.9 in the Eurozone (an 11-mongh high, up from 51.5).
The year-over-year decline in producer prices in the Eurozone is forecast to slow to 7.7 percent in April from 8.3 percent in March. The PPI is seen down 0.5 percent after falling 1.0 percent.
The US data calendar is thin.
Richmond Federal Reserve Bank President Thomas Barkin will speak before the Columbia Rotary Club at 12:50 p.m. EDT (1650 GMT).
New York Federal Reserve Bank President John Williams will participate in a conversation before the Milken Institute 2024 Global Conference at 1 p.m. EDT (1700 GMT).
On Monday, choppy trading is likely to continue in the dollar/yen forex market as the Japanese markets are closed at the end of the Golden Week holidays. What is believed to be the Ministry of Finance's stealth dollar selling intervention has pushed the dollar/yen rate back to 153 yen from 160 yen.
No major revisions are expected to the April purchasing managers indexes for the services sector in Europe, leaving the PMIs at 50.5 in France (the first growth since May 2023, up from 48.3 in March), 53.3 in Germany (a 10-month high, up from 50.1) and 52.9 in the Eurozone (an 11-mongh high, up from 51.5).
The year-over-year decline in producer prices in the Eurozone is forecast to slow to 7.7 percent in April from 8.3 percent in March. The PPI is seen down 0.5 percent after falling 1.0 percent.
The US data calendar is thin.
Richmond Federal Reserve Bank President Thomas Barkin will speak before the Columbia Rotary Club at 12:50 p.m. EDT (1650 GMT).
New York Federal Reserve Bank President John Williams will participate in a conversation before the Milken Institute 2024 Global Conference at 1 p.m. EDT (1700 GMT).
Definition
Market Focus details key factors in the coming day that will impact the economic outlook and the financial markets. These include central bank events, economic indicators, policymaker speeches as well as expected political and corporate developments.
Description
Keeping up-to-date with event schedules and the economic calendar is key to understanding the global financial system. Econoday's Market Focus allows investors and policymakers to carefully track what will be making news and moving the financial markets in the coming day.
