The upcoming week in forex features interest rate decisions from the US and Japan, amidst worries from both sides of the Pacific. In addition, German ZEW Economic Sentiment and American Building Permits will be watched on Tuesday, Claimant Count Change in Britain on Wednesday, Unemployment Claims on Thursday, and Canadian Core Retail Sales on Friday. Let’s look at the upcoming week.
Monday, March 16th: In Britain, the Rightmove HPI is expected to rise, for a change. Europe’s CPI and Core CPI are expected to stay stable, and within the wanted range.
In America, the focus will be on the TIC Long-Term Purchases, following China’s fear about US treasuries. Also the Empire State Manufacturing Index and the Industrial Production will be watched by traders.
Tuesday, March 17th: Australia’s decision not to lower the interest rates will be explained when the Monetary Policy Meeting Minutes will be released. AUD/USD could continue to rise.
In Switzerland, that wants a weak currency, the Industrial Production is expected to decline slightly. Also the SECO Economic Forecasts will impact the Swissy.
In Europe, the German ZEW Economic Sentiment will be closely watched. In Canada, Manufacturing Sales should move the loonie.
The US releases the important Building Permits as well as Housing Starts, in the same field. Also PPI and Core PPI are released, and are expected to rise modestly.
Closing the day, there are speeches by Jean-Claude Trichet and and Mervyn King. Interesting moves might happen in the EUR/GBP cross.
Wenesday, March 18th: Both the BOJ and the Federal Reserve will publish new interest rates on Wednesday. Both are expected to be left unchanged, since the “race to zero” has been won by both countries. The interesting parts are verbal: the BOJ Press Conference and the FOMC Statement will be closely analyzed.
Apart from interest rates, Britain will release the Claimant Count Change which is expected to rise to 84.5K, after going down for a long time. Another major figure from Britain is the MPC Meeting Minutes, which is due to explain the latest rate cut.
And in the US, Wholesale Sales are expected to continue to decline, this time by 2.6%. Also notable are the Current Account and the Core CPI.
Thursday, March 19th: It’s Switzerland’s turn to receive the ZEW Economic Expectations report. Canadian Core CPI is expected to stay stable.
In America, Unemployment Claims are expected to stay around 650K. Also of interest to traders is the Philly Fed Manufacturing Index and the CB Leading Index.
Friday, March 20th: This time, it will be a rather quiet Friday, with Japan being on holiday. Still, European Industrial Production is expected to plunge by 3.8% and will draw attention. Also in Europe: Italian Unemployment Rate which is expected to rise and German PPI which is expected to decline.
In Canada, Retail Sales and Core Retail Sales will be closely watched by traders of the USD/CAD.
Ben Bernanke will close the week with a speech titled “The Financial Crisis and Community Banking”, which will draw attention.
That’s it. Have a great week!
Update: arthurb, a member of the Forex Factory community, commented that Friday is “Truple Withching Friday“, in which all kinds of securities expire. So, the last hour of trade in New York, between 19:00 to 20:00 GMT, might be very volatile in the forex market, even more than Wednesday this week, which is packed with economic indicators. Thanks arthurb!