This week will be so saturated that it is even difficult to choose from all events the main and most interesting. A large number of important news will necessarily cause high volatility in currency pairs, which can persist throughout the week.
Open the week data of unemployment and consumer price indices in Europe. Slowing inflation can press to the euro not only in the short term, but if market participants will begin to doubt that the ECB will reduce QE, the single currency will change growth to decline.
Meeting of the Reserve Bank of Australia
Philip Lowe said recently that the Reserve Bank of Australia softened monetary policy less than other central banks. Therefore, on Tuesday, are not expected any changes in the monetary policy of the Australian regulator. Wherein, the head of the RBA may express concern about the high exchange rate of the national currency, but very often this leads to the opposite effect, when instead of reducing the Australian dollar strengthens.
Meeting of the Bank of England
The Bank of England has new supporters of tightening monetary policy, so if policymakers will more persistent, voting for raising rates may be the majority. But latest economic data from the UK could cool the hawkish sentiment in the Bank of England. In this case, the policy of the British regulator may remain unchanged, but the markets can hear more constructive statements about the possibility of tightening monetary policy at the next meeting of the Bank of England.
The US Labor Market
As usual, at the beginning of the month will be published data block of the US labor market. For restore the US dollar just one NFP, even if the number of new vacancies exceeds expectations and past values, it will not be enough. To return at least part of the positions, for the greenback will also need a reduction of unemployment, and a more active rise in wages.
Canada Labor Market
The Canadian dollar is feeling very confident after the Bank of Canada raised interest rates. In addition, the incoming statistics contributed for the strengthening of Canadian currency, but at the end of the week the data can be quite modest, which can temporarily keep the Canadian dollar from further growth.