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#1 02-02-2021 09:07:14

Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 3069

What trading events can we expect this week?

What trading events can we expect this week?

This current week is full of economic events capable of moving the financial markets. If we add to the economic data the volatility of the U.S. stock markets, we can say that the week ahead is interesting.

Two central banks are announcing their rate decisions this week: the Bank of England (BOE) and the Reserve Bank of Australia (RBA). Of the two, the BOE's decision is more important for currency traders as it is the first time after Brexit that the bank expresses its views on the economy and the road ahead.

As this is the first trading week of the month, the NFPs (Non-Farm Payrolls) in the United States are published on Friday. In other words, the focus this week is on the British pound and the US dollar.

As usual during NFP week, PMI and ISM data will also be released in Europe and the US respectively. Traders will look closely at the employment component of the ISM in the U.S. to get a sense of the possible outcomes of the NFP report later in the week. In addition, the ADP, or private pay slips, which are published this Wednesday, help.

The BOE's decision on Thursday is the event of the trading week. The British pound (GBP) has been trading in an upbeat tone since the announcement of the Brexit deal at the end of last year, but that could change once the BOE issues its statement this week. The recent scandal over AstraZeneca's vaccine deliveries to Europe was quickly attributed to Brexit, and if things don't resolve quickly we could see tensions spreading to the currency market as well.

The week ends with the NFP report - a critical report this week after the previous report showed that the US economy has lost more than 100,000 jobs. If the U.S. economy shows signs of life and starts to create jobs again, traders will see this as the result of the vaccination campaign that is running at full speed in the United States.

All in all, a critical week ahead, with two major currencies in the spotlight: the British pound and the USD.

"Anything worth having is worth going for - all the way." - J.R. Ewing



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