Your Weekly Fundamental View (29 May - 2 June)

Mei 29, 2017 12:00

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Need to Know

The main focus of the trading week is the Non-Farm Payroll (NFP) announcement in the U.S., which is known to be the most important event of the month. The news release can cause increased price volatility in the US Dollar and other financial instruments.

Coming Up

Bank Holiday Takes Place on Monday, 29 May

The U.S., UK, and China all have official public holidays on the same day. The day off in the U.S. is due to Memorial Day, in the UK, due to the Spring Bank Holiday, and in China, in observance of the Dragon Boat Festival.

Why should you care? The Forex, CFD, and financial markets could be slower and quieter in their price movements as the major financial hubs, London and New York, see public holidays take place on Monday.

ECB President, Mario Draghi, Speaks on Monday, 29 May

The President of the European Central Bank (ECB) is expected to testify on the economic and monetary developments. Draghi will speak before the Economic and Monetary Affairs Committee in Brussels.

Why should you care? Traders and investors are interested in receiving clues about the interest rates as well as economic and monetary policy in general, which could affect the Euro currency.

Japanese Unemployment Rate is Announced on Tuesday, 30 May

The unemployment figure provides information about the number of the unemployed who were actively seeking employment in the previous month. The unemployment rate shows its relation to the total work force.

Why should you care? The unemployment rate in Japan is relatively low with a forecasted figure at 2.8%, unchanged from the 2.8% registered in 2016. (*)

German and EU Unemployment Rate is Released on Wednesday, 31 May

Both Germany and the EU will announce their new unemployment figures. The rates indicate the number of the unemployed who were actively seeking employment in the previous month in relation to the total work force.

Why should you care? The unemployment rate in Germany is higher than in Japan and lower than the EU average. The forecasted figure in Germany is 5.7% (*), whereas the previous figure stands at 5.8%. (*) The forecasted figure in the EU is 9.4% with the previous figure at 9.5%. (*)

US ADP Rate is Announced on Thursday, 1 June

The ADP estimates the change in the number of employed people during the previous month. The number excludes the government and the farming industry. The ADP provides payroll services to US corporations with a reach of 400,000 customers.

Why should you care? Job growth is a key factor of economic growth. The forecasted figure is 185K, whereas the previous figure, 177K. (*)

US Unemployment Rate and Non-Farm Payroll (NFP) is Expected on Friday, 2 June

The U.S. also releases its unemployment rate this week like Japan and Germany. The financial markets will receive information about the NFP figure as well, which shows the change in the number of employed people during the previous month, but excludes the farming industry.

Why should you care? The forecasted figure for the US unemployment rate is likely to remain similar to last year's at 4.4%. (*) The forecasted figure for the US NFP rate is 185K, whereas the previous figure stands at 211K. (*)

us un rate.pngSource: US Unemployment Rate

Balance of Trade in Canada and the U.S. will be Announced on Friday, 2 June

The trade balance indicates the value difference in imported and exported goods during the month. Most of Canada's exports go to the U.S. A positive number indicates that more goods were exported than imported.

Why should you care? A country with more exports than imports will see more demand for its currency because the importer must pay for the goods in the local currency. In Canada, the previous figure is C$-0.14B (*), and the current forecast is for C$-0.25B (*). In the U.S., the previous figure stands at $-43.7B (*) with the current forecast being $-44.4B (*).

(*) Admiral Markets – Forex Calendar