Important week of global economic data release and rate decision
EURUSD AUDUSD GBPUSD EURGBP USDJPY
The month of June starts with a flurry of activity as traders and investors ready themselves for a non-stop week of high-impacting macroeconomic data releases and central bank rate decisions. This week we see PMI manufacturing data releases from the Japanese, Chinese, UK, eurozone, Canadian and United States economy and interest rate decisions from the Reserve Bank of Australia and the European Central Bank. The RBA is widely expected to cut interest rates after nearly three years of keeping rates on hold, while the ECB is expected to significantly downgrade eurozone growth expectations this week.
The American economy also releases the important ISM Manufacturing report this week and the Nonfarm payroll job, with most economists expecting that the United States economy created 190,000 new jobs last month. We also see a host of eurozone data and the release of the Canadian monthly jobs report.
Monday 3rd June, USD Manufacturing PMI
The United States Manufacturing PMI reports on Manufacturing activity inside the American economy and represents economic indicators derived from monthly surveys of private sector companies. PMI data provides advance insight into the private sector economy by tracking variables such as output, new orders, employment and prices across these key sectors.
- The EURUSD pair is bullish while trading above the 1.1190 level, key resistance is found at the 1.1216 and 1.1265 levels.
- If the EURUSD pair moves below the 1.1190 level, sellers are likely test towards the 1.1100 and 1.1050 support levels.
Tuesday 4th June, 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 cut the nations interest rate from 1.50 percent to 1.25 percent at this meeting and strike an overall dovish tone towards the economy and monetary policy.
- The AUDUSD pair is bullish while trading above the 0.6910 level, key resistance is found at the 0.6980 and 0.7050 levels.
- If the AUDUSD pair moves below the 0.6910 level, sellers may test towards the 0.6860 and 0.6790 levels.
Wednesday 5th June, GBP UK Services PMI
The United Kingdom Services PMI is released by both the Chartered Institute of Purchasing and Supply and also Markit Economics. The UK Services PMI is a key indicator of the economic situation in the UK services sector which captures an overview of the condition of sales and employment. It is worth noting that the United Kingdom service sector comprises roughly eighty percent of the United Kingdom’s gross domestic product.
- The GBPUSD pair is bearish while trading below the 1.2660 level, key support is found at the 1.2550 and 1.2460 levels.
- If the GBPUSD pair trades above the 1.2660 level, buyers are likely to test towards the 1.2747 and 1.2800 resistance levels.
Thursday 6th June, EUR ECB Press Conference
After the ECB Interest Rate Decision is announced, the European Central Bank holds a lengthy monthly press conference with ECB President Mario Draghi delivering a prepared statement. The main points of the conference are inflation and an economic overview and examination of the causes behind the Governing Council’s decision. During the conference, ECB President Mario Draghi answers questions and also gives important clues related to future monetary policy.
- The EURGBP pair is only bearish while trading below the 0.8640 level, further downside towards the 0.8510 and 0.8440 support levels seems possible.
- If the EURGBP pair moves above the 0.8640 level, buyers are likely test towards the 0.8880 and 0.8950 resistance levels.
Friday 7th June, US Nonfarm Payrolls Job Report
The NFP job report shows the monthly change in employment in the American economy, excluding the farming sector. The Non-farm payrolls job report 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 bearish while trading below the 109.00 level, further losses towards the 108.40 and 107.70 levels remains possible.
- If the USDJPY pair trades above the 109.00 level, buyers are likely to test the 109.60 and 110.10 resistance levels.