Weekly Outlook 29th of May to 2nd of June

2017-05-28

Weekly Outlook 29th of May to 2nd of June

Maximusfx.com Weekly Outlook – The US dollar recovered its decline from past week against a basket of currency pairs on last Friday, as data indicating that US initial 3-month economic rise was reversed to higher whereas Great Britain Pound fall dramatically amid fears on the approaching UK votes, Prime Minister election.

The US economy growth reduced less first expected in the initial quarter of the year. GDP raised to 1.2% in 3-month time by March. 

According to Economic Experts, the US economy is however expected to sharply higher growth in this following quarter despite its current slow economic growth is much less than first three-month growth of last year, 2016.

Federal Reserve come to a decision that there should be a delay on raising interest rates by the time it was obvious that recent US economic slow growth was provisional even though rate hike was expected to come soon.

Among currency pairs, the Euro pair against USD declined to 0.26% last Friday, while the dollar stayed feebler against Japan Yen at 0.43%.

Great Britain currency pair, sterling against US dollar dropped to one month low at 1.1% upon a views poll illustrating that the Labor Party shortened the space on governing Conservative Party ahead of approaching polls thus driving to political circumstances risk of immediate Brexit.

In the meantime, recent economic illustrations prove that there is highly probable economic recovery in the currency coalition is getting peak talk, pressuring to keep an eye on how fast the European Central Bank might gauge back stimulus classification, hence investors will keep an eye on monthly inflation data to release to identify ECB asset purchase program.

The financial markets, this week is mostly to stay volatile due to upcoming US announcement on Friday`s Federal Reserve meeting minutes for illustrations on the non-farm payroll release for May.

Here is the weekly outlook in the financial market by Maximusfx.com categorized as a list that could cause major volatility across currencies   

29th of May, Monday

US and UK banks are closed due to holidays.

Mario Draghi, ECB President is to state the economy and monetary progress

30thof May, Tuesday

China Banks will be closed due to holidays.

Australia is to report on building permits.

Germany is to announce on inflation

The US is to announce on expenditure and personal income

31stof May, Wednesday

The New Zealand Reserve Bank is to announce financial circumstance stability.

China is to state on manufacturing and service sector activity data

Germany is to illustrate on retail sales data

The UK is to release on bank lending

The Eurozone is release inflation data

Canada is to report on economic growth

The US is to demonstrate on pending home sales and business activity

1st of June, Thursday

Australia is to indicate data on retail sales and capital expenditure

China is to announce on its Caixin Services PMI

The UK is to report its manufacturing PMI

The US is to announce on the ADP non-farm payrolls and weekly report on Initial Jobless claims

2nd of June, Friday

The UK is to illustrate PMI Construction

Canada is to announce trade data

The US is to announce on Nonfarm Payrolls Report for May

 

Prepared by Maximusfx Senior Analyst – Z. Nuriddinov.