Weekly Market Outlook: December 2-6्ध Forex Analysis
As we gear up for the new week, there are some key events on the horizon that could impact the markets. From the US ISM Manufacturing PMI to the Swiss CPI and the US jobs data, it’s shaping up to be an eventful start to December.
On Monday, the US ISM Manufacturing PMI is expected to come in at 47.5, showing signs of improvement in the manufacturing sector. With reduced political uncertainty post-US Presidential Election, along with expectations of lower interest rates and better economic conditions, optimism is on the rise.
Moving to Tuesday, keep an eye on the Switzerland CPI Y/Y, which is forecasted to be at 0.8%. Despite falling inflation rates in Switzerland, the market is anticipating further rate cuts in December. SNB’s Chairman Schlegel has hinted at the possibility of reintroducing negative interest rates if needed.
Wednesday brings the US ADP report, expected at 150K. While the ADP’s predictive power for the NFP is questionable, it can still impact market sentiment. The US ISM Services PMI is also on the agenda, projected at 55.6, reflecting a positive uptick in economic activity.
Thursday’s highlight is the US Jobless Claims, providing insight into the labor market’s health. Initial Claims are forecasted at 215K, indicating ongoing stability, while Continuing Claims remain elevated.
Closing out the week on Friday, watch for the Japanese Average Cash Earnings Y/Y at 2.6% and the Canadian Labour Market report expected to show 27.5K jobs added in November. The US NFP report is also anticipated to reveal 195K jobs added in November, with a slight uptick in the Unemployment Rate.
With various economic indicators and data releases lined up for the week, market watchers are prepared for potential fluctuations. Stay informed and stay tuned for updates as the week unfolds.
