Asia’s economic calendar on Wednesday, 17 April 2024 to include New Zealand inflation data

The forex market outlook for the week of September 29th to October 3rd presents several key events and data releases that will influence trading. The week kicks off with a slow start on Monday, devoid of major economic events affecting the FX market. However, attention shifts to Australia on Tuesday as the Reserve Bank of Australia (RBA) reveals its monetary policy decision. In the U.S., the focus will be on the JOLTS job openings and the CB consumer confidence report.

Wednesday brings a flurry of data releases, including eurozone inflation figures and manufacturing PMI data for the eurozone, the U.K., and the U.S. The U.S. will also publish the ADP non-farm employment change. Thursday sees the release of Switzerland’s inflation data and the U.S. weekly unemployment claims. Lastly, Friday features a speech from Bank of Japan Governor Ueda, along with key indicators like average hourly earnings, non-farm employment change, unemployment rate, and ISM services PMI in the U.S. Throughout the week, various FOMC members will deliver remarks, shaping market sentiment.

The RBA is expected to maintain its cash rate unchanged at this week’s meeting. Recent inflation data has exceeded expectations, but policymakers seek more evidence to determine if this trend is sustainable. Similarly, Eurozone inflation data and ECB forecasts will be closely scrutinized. The ECB’s dovish projections could pave the way for a rate cut if inflation trends don’t align with targets. Furthermore, U.K. manufacturing data is expected to stagnate, reflecting ongoing sectoral challenges.

In the U.S., the ISM manufacturing PMI is showing marginal growth, while the services sector maintains some stability despite rising costs and subdued demand. Job data is a key focus, with non-farm employment expected to increase, while unemployment remains steady. The nation’s labor market has cooled, leading to restrained hiring and weak employment plans. If this trend persists, further rate cuts might be on the cards in late October, potentially impacting market dynamics.

Overall, the week offers a mix of economic data, monetary policy announcements, and labor market insights that will shape trading sentiments and market movements. From central bank decisions to employment trends, investors and traders must stay vigilant to capitalize on opportunities and manage risks in the volatile forex market.