A high-adrenalin start to the month with essential data releases commenced last week with the PMI data from the U.K. and E.U., both expected to be very close to the prior lift following the previous week’s emerging markets sell-off. The Euro was at its ten consecutive week low following the slightly weaker inflation data putting so much pressure on the ECB to trim down rates in order to curb and counter deflation risks.
Likewise, there was also the RBA rate announcement, which is due this week which is also expected to remain unchanged. However, with the AUD being higher that what the RBA would require than what the RBA want they could possibly make use of this as a tool in order to weaken the currency. ADP data in the United States will later be revealed later this week and is presently posting much better than expected results over the course of the last two months.
Last week, the EU and UK Central Banks will be announced their respective rate decisions. The consensus is that there will be no prior change expected however the ECB surprised the market before with a revelation in cutting the rates after weaker than expected inflation data. Hence investors found themselves in the same position and territory with the weaker inflation causing the risk of an additional deflation.
Later next week, when the non-farm payrolls for the United States will be abound after last month’s relatively frail data brought about by the big freeze. It is expected things will be back to normal when plenty of lost data digest this week is likewise expected to swing plenty of changes as each are announced alongside the comments from the central banks respectively.