We have a new trading week full of events and important economic data which may have a significant impact on the movements of the markets this week, and we will review the most important of this data:
Cash Rate Decision from Australian Reserve / Growth Data
The Reserve Bank of Australia has not changed interest rates for more than a year when it cut it to historic lows of 1.5% in August 2016. The Bank has taken a neutral stance recently, expressing dissatisfaction with the appreciation of the Australian dollar and that current monetary policy is most appropriate for the current situation, Interest rates are therefore expected to remain unchanged for the 12th consecutive meeting.
GDP is also expected to be released in the second quarter of 2017. The economy is expected to grow by 0.8% quarterly, after growing by 0.3% and growing by 1.8% on yearly basis.
Canadian overnight Rate Decision / Employment Data
The Bank of Canada raised interest rates at its last meeting in July for the first time in seven years, leaving the door open for further rate hikes in the coming period. Most expectations are that the bank will keep interest rates unchanged at this week's meeting and raise them at the October meeting.
Also, the markets will turn to the Canadian jobs report as the economy is expected to add about 15,000 jobs in August after adding 10.9K jobs in July. And that the unemployment rate will be at 6.3%.
European Bid Rate Decision / Growth Data for the Euro Zone
No change in interest rates is expected. All eyes will be on ECB President Mario Draghi at the press conference and the markets will monitor his comments and hints about the ECB's intention to cut its quantitative easing program and begin tightening monetary policy.
Also, GDP data for the second quarter will be released and the eurozone economy is expected to grow by 2.2% YoY and 0.6% quarterly.
Service sector data in the United States
ISM data on the non-manufacturing sector will be released for August and the sector is expected to grow by 53.3 points after growing in July by 53.9 points. The ISM manufacturing sector reported its highest growth since April 2011 last week.
