Last week was an extremely active macro-economically – the BoE increased its interest rate for the first time in a decade, the NFP came in significantly under expectations and the EU saw a drop of its GDP from the previous period and came in under expectations 2.3%.
Monday – 6/11
Today Governor Kuroda has already delivered his speech, noting that signs of economic growth are plentiful – pointing towards his expectation that Japan’s inflation target of 2% soon. This saw the JPY slipping slightly – because even though Kuroda’s overarching message was positive, his speech was received as dovish by markets. Otherwise Monday is poised to be a quiet day.
Tuesday – 7/11
More on the safe-haven, no interest hike front – tomorrow, Tuesday, at 03.30 GMT the RBA will announce its rate decision – or lack thereof. At the moment analysts and markets are expecting it to hold, that may pull the AUD down slightly, like it did JPY today.
So its seems that this week has a theme – since CAD (another safe-haven) might be affected by BoC Governor’s speech on Tuesday. The BoC has also been dovish recently so much like its Japanese and Australian counterparts – markets will keep an ear to the ground for anything hinting towards a future rate hike.
Wednesday – 7/11
The EU non-monetary meeting is slated for 08.00 on Wednesday and although it won’t deal with monetary policy, there might be statements made hinting towards a change in their recent dovish approach.
NZD traders will be looking out for the RBNZ Interest Rate Decision at 20.00 GMT.
