Market Brief May 30th: Gross Domestic Product from the U.S.
EUR, 09:00 a.m. GMT +1, German Unemployment (May) – the index measures the change in the number of individuals who became unemployed during the month of May. Market analyst projections point to an increase in the people who were out of job at -10K versus -7K in April. If the report shows a higher than expected number, this should be read as a bearish sign. A softer reading would suggest that less individuals were out of job and should be seen as bullish for the euro.
The United States:
USD, 13: 15 p.m. GMT +1, ADP Nonfarm Employment Change- the number comes out two days ahead of the Nonfarm Payrolls and it is known to be a useful predictor of private non-farm employment which comes out on Friday. This number can cause wild fluctuations in price movements and thus potential opportunities for trading across the board.
The market foresees a decline in the number of individuals employed, 14,000 down in May at 190K compared to April’s employment at 204K. Of course, a reading which beats predictions with a higher score should be read as bullish for the dollar, while a much lower result could erode its value and price may tank.
USD, 13:30 p.m. GMT +1, GDP (QoQ) (Q1) P – Gross Domestic Product will impact currencies and indices across the board. The reading is a preliminary number for the first quarter of 2018 and it measures the change in the total output of goods and services (inflation adjusted). Forecast shows GDP to remain unchanged at 2.3%, same as for the last quarter of 2017. A better performance from expectations should be read as a bullish sign for the dollar. A considerable slow-down is to be read as a negative for the currency.
15:00 p.m. GMT +1, BoC Interest Rate Decision – an event with major impact on the Canadian dollar and characterized by sharp volatile movements, especially during the time the event comes out. Market analysts expect the rate to remain the same at 1.25%, same as last time.
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