Currency Trade (FOREX)
What to expect on the markets during next week
The sentiment turned in favor of the dollar after Mario Draghi said that the ECB is ready to act at its next meeting in June. That means either lowering of interest rates or launching the QE in the Eurozone. The euro touched 1.40 and dropped more than 100 points on Thursday during a pressconference of the ECB. The key sentence Draghi said, leading to sales of the single currency was " The ECB is in a comfortable position to act in June". The pound failed to pass above the key psychological level of 1.70 and investors take profits in the last two days of the week.
Monday is the poorest of econimic data day of the week. At 04:30 we expect business confidence in Australia. No other news during the Asian session. During the European session only news from Switzerland at 10:15 - retail sales annually. They are expected to jump by 2.3 % compared to the previous growth of 1.0 %. The following data are only at 21:00 US - budget balance is unlikely to cause changes in the markets.
Tuesday 's stronger economic data. The calendar begins with data on home loans in Australia and prices. Expected to decline in both indicators. Expect very strong data from China 08:30 - industrial production for April annually. Expected a slight increase to 8.9 % versus 8.8% previously. At 09:45 in France expect the current account of the country. Stronger data from Germany 12:00 - ZEW index of economic conditions. During the U.S. session we expect high volatility around 15:30, when America will be announced retail sales . Expected weaker data from the previous period.
Wednesday began with strong data from New Zealand. At 01:45 we expect retail sales for the first quarter . Following inflation data from Germany 09:00 - consumer price index for April . Very strong evidence expect UK 11:30 - changes in employment and unemployment . Unemployment is expected to fall to 6.8 %. Last week BoE keep its monetary policy unchanged and do not expect surprises here . At 12:00 , after industrial production in the Eurozone . Afternoon America only strong evidence is 15:30 - PPI . There will be lower than previous data , volatility in the dollar crosses .
Thursday is the strongest economic data. The day begins with data from Japan's GDP at 02:50 . It is expected to grow in the first tirmesechie . After a strong data from Germany 09:00 - GDP for Q1. 10:15 - PPI Switzerland. At 12:00 following data for CPI and GDP of the Eurozone. There will be conflicting data . At 15:30 we expect CPI and the United States. 17:00 again strong data from the U.S. manufacturing index - FED Philadelphia.
Friday started with the industrial production in Japan. At 08:30 in France expect GDP for the first quarter and employment in the agricultural sector. The following are details of America at 15:30 in the housing sector . Precisely in this sector are focused concerns of the Chairman of the Fed - Yella . Awaiting Housing Starts Construction and building permits. At 16:55 will go consumer confidence of Michigan.