This week’s economic docket picks up considerably as a slew of data points on each day carries the potential to drive price action across global markets. Speaking of price action, there are quite a few major currency pairs that appear to be in some form of transition as we start the week, and the drivers brought to the fray over the next few days can help to denote how each situation can be or should be handled.
Below, we preview the highlights of this week’s data and below that, we look at three of the more pronounced ‘transitions’ in price action taking place in the FX-space.
This week’s drivers: (Economic Docket)
Rate decisions: On Tuesday morning we’ll hear from the Reserve Bank of Australia. There are scant expectations for any changes here, but as has become usual for the Aussie, the details surrounding this rate decision will likely be the driver. On Wednesday, we hear from the Fed for their May rate decision and there’s little expectation for any actual moves here either. There is no press conference for this meeting, at least not yet on the Calendar; but as Chair Yellen has reminded numerous times, every meeting is a ‘live meeting’ in which the bank may hike rates, after which they would hold a press conference to address the details around the move.
U.S. Equity Earnings: We’re in the thick of earnings season and this week sees quite a few big names report. Apple reports earnings after market close on Tuesday, and then both Facebook and Tesla report after Wednesday’s close. Apple, in particular, can be interesting from a macro perspective given their focus on sales growth in China.
Central Banker Speeches: To begin the week, the Federal Reserve is still in a ‘blackout period’ in which Fed members cannot publicly comment on rate policy, but that door opens after Wednesday’s rate decision. Later tonight we hear from Haruhiko Kuroda, the head of the BoJ, at a Global Think Tank Summit in Yokohama. And then on Thursday afternoon, we hear from Mr. Mario Draghi when he speaks in Lausanne, Switzerland; and later that evening we’ll hear from Bank of Canada Governor Stephen Poloz. Chair Yellen caps off the week with a speech after market close on Friday when she speaks at Brown University.
