US job report and central bank action headline the economic calendar
US JOBS AND CENTRAL BANKS
During the upcoming trading week traders and investors look to the US Nonfarm Payrolls Job report and key interest rate decisions from the Reserve Bank of Australia, Bank of Canada and the European Central Bank. The world’s largest economy releases the Nonfarm Payrolls job report, with the US expected to have created 185,000 new jobs during the month of February. The BOC, RBA, and the ECB are largely expected to keep rates on hold, with more dovish rhetoric expected inside the central bank’s policy statements.
Gross Domestic Product data is also in also heavily in focus this week, with South Korea, Australian and Japanese all releasing quarterly GDP figures. We also see PMI data being released from the United States, Chinese, Canadian and the United Kingdom economy.
Monday March 4th, GBP UK Construction PMI
The UK Construction Purchasing Manager Index is released by the Chartered Institute of Purchasing and Supply and is a monthly measure of construction sector activity inside the United Kingdom economy. The PMI summarizes the opinions of executives in the construction sector who give a picture of the future of the construction sector.
- The GBPUSD pair is bullish while trading above the 1.3200 level, key resistance is found at the 1.3300 and 1.3350 levels.
- If the GBPUSD pair moves below the 1.3200 level, sellers will likely test towards the 1.3155 and 1.3095 support levels.
Tuesday 5th March, AUD RBA Rate Decision
The Reserve Bank of Australia Rate Decision is the market interest rate on overnight funds, with the RBA standing as the central monetary authority for the Australian economy. The Reserve Bank of Australia is widely expected to leave the nations interest rate unchanged and strike a more dovish stance towards the economy and monetary policy.
- The AUDUSD pair is bullish while trading above the 0.7210 level, key resistance is found at the 0.7280 and 0.7340 levels.
- If the AUDUSD pair moves below the 0.7210 level, sellers may test towards the 0.7110 and 0.7060 levels.
Wednesday 6th March, CAD BOC Rate Decision
The Bank of Canada Interest Rate Decision is a decision of the governing council members on where to set the nations interest rate. Most market participants believe that the Bank of Canada will leave interest rates on hold this week after a series of hikes last year. After the actual rate decision, the central bank releases a policy statement that contains the BOC’s collective perspective on the economy also ideas about future monetary policy.
- The USDCAD pair is bullish while trading above the 1.3280 level, key resistance is found at the 1.3350 and 1.3465 levels.
- If the USDCAD pair trades below the 1.3280 level, sellers are likely to test towards the 1.3220 and 1.3160 support levels.
Thursday 7th March, EUR ECB Interest Rate Decision
The ECB Interest Rate Decision is announced by the European Central Bank, with ECB President Mario Draghi delivering a monetary policy statement shortly after. If the ECB is more hawkish about the inflationary outlook of the EU economy, it is positive for the euro currency. If the ECB has a more dovish view on the overall economy and the inflationary outlook of the EU trading block, it is usually taken as bearish and may cause the euro currency to weaken.
- The EURUSD pair is only bullish while trading above the 1.1375 level, further upside towards the 1.1450 and 1.1500 resistance levels seems possible.
- If the EURUSD pair moves below the 1.1375 level, sellers are likely to test towards the 1.1337 and 1.1300 support levels.
Friday 8th March, US Nonfarm Payrolls Job Report
The NFP job report shows the monthly change in employment in the American economy, excluding the farming sector. Non-farm payrolls is the most carefully observed indicator in the employment situation inside the United States. It is considered the most inclusive calculation of job creation, which causes the Nonfarm Payrolls Job report to become highly significant to market participants, due to the great importance of labour in the United States economy.
- The USDJPY pair is only bullish while trading above the 111.12 level, further upside towards 112.20 and 113.40 levels remains possible.
- If the USDJPY pair trades below the 111.12 level, sellers are likely to test the 110.60 and 109.80 support levels.