The weak ahead ( 29 May – 2 June ) : Eyes will be on US jobs report

28 May 2017 08:31 PM

After the suffering of the US dollar over the past two weeks, can the US jobs report provide enough support for the dollar again? There will also be a number of important economic data during this week which will have an impact on the movements of the market, and now we will take a look at the figures for this week's awaited:

Draghi's testification and preliminary inflation data for the euro area

Mario Draghi, the ECB's governor, is due to testify before the European Parliament's Economic and Monetary Affairs Committee on the economy and monetary policy developments. After his comments last week that the ECB is committed to the full implementation of the quantitative easing program, The European Central Bank is waiting for further evidence about the improvement of the Eurozone economy.

Also this week, preliminary consumer price estimates for 13 countries from the euro area will be released and are expected to record 1.5% in May. The final reading of the index will be released within the next two weeks.

Manufacturing data in China

The markets were surprised last week by Moody's downgraded China's credit rating for the first time since 1989, shifting its outlook from negative to stable. Markets this week are looking at one of the most important data from the Chinese economy, manufacturing data.

The PMI is expected to score 51.0 points in May, Amid market fears of a slowdown in China's economy in the second quarter of this year.

Growth data in Canada

The GDP reading is due to release for March as well as the first quarter of 2017. There was no change in the February reading and it came at 0.0%. BOC indicated that the economy recorded strong growth during the first quarter of this year, but is expected to see some decline during the second quarter as it monitors economic data to be released.

Australian retail sales and private capital spending

Retail sales are the primary gauge of consumer spending. Australian retail sales have been weak in the last three months out of four, and markets are expecting a 0.3% rise in April. Also, private capital spending data will be released, and the index has fallen in the last four readings respectively, and current expectations are expected to improve by 0.3% in the first quarter.

Construction and manufacturing data in the UK

The Manufacturing PMI is due to be released, and the manufacturing sector is expected to grow by 56.5 points in May, while the construction sector is expected to record 52.7 points.

US Jobs Data

All eyes will be Looking ahead to next week's US Nonfarm Employment Data, and will it continue to improve?. This is the last reading before the Fed meeting in June, which is expected to raise rates for the third time this year. The US economy added 211,000 jobs in April and is expected to add 186,000 jobs in May. The wage rate data also will be released and  it is expected to rise by 0.2%, unemployment rate expected to stabilize at 4.4%.

Most policymakers now expect to raise interest rates twice this year at least, but will the recent slowdown in economic data as well as political tensions will stop the interest rate hike or they will consider it as temporary factors.

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