This week's economic calendar is packed with potential trading opportunities. We start off in Canada, where CPI data on Tuesday could set the tone for currency movements. Traders should watch for figures that come in below expectations, signaling that rate cuts could be on the horizon by the Bank of Canada. Such an outcome could spur a bullish scenario for the USDCAD pair, presenting a prime trading opportunity.
Moving across the Atlantic, the focus shifts to the UK with labour data also due on Tuesday. If the numbers are weaker than anticipated, it could provide a solid rationale for selling the pound. This is particularly pertinent in light of recent comments from Governor Bailey, who hinted at the possibility of forthcoming rate cuts. The pound's response to this data will be critical, and traders will need to be agile in their strategies.

Governor Bailey is slated to speak later in the week, and his remarks could further influence GBP trading dynamics. His speech is eagerly anticipated as it might clarify or adjust market expectations regarding the UK's monetary policy path.

Down under, Australian employment data will also capture the market's attention. With copper prices currently experiencing an uptick—potentially boosting the Australian economy—strong job numbers could reinforce the AUD. This presents a unique interplay between commodity prices and national economic indicators, which could lead to favourable trading conditions for the Aussie.

The week will wrap up back in the UK with the release of retail sales data. The implications of this report could be amplified by the outcomes of the earlier CPI release and Governor Bailey's subsequent comments. Depending on these factors, the retail sales data could either confirm the week's trends or introduce new dynamics, offering additional trading opportunities.


Learn more about Financial Source

Our products and commentary provides general advice that do not take into account your personal objectives, financial situation or needs. The content of this website must not be construed as personal advice.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD holds above 1.0800 after German and EU PMI data

EUR/USD holds above 1.0800 after German and EU PMI data

EUR/USD holds above 1.0800 in the European session on Thursday. The data from Germany and the EU showed that the business activity in private sector expanded at an accelerating pace in May, helping the Euro find demand. US PMI reports will be published later.

EUR/USD News

GBP/USD clings to small gains above 1.2700

GBP/USD clings to small gains above 1.2700

GBP/USD is clinging to recovery gains above 1.2700 in European trading on Thursday. The PMI data from the UK showed that Composite PMI edged lower to 52.8 in May (preliminary) from 54.1 in April, limiting Pound Sterling's gains ahead of key data releases from the US.

GBP/USD News

Gold price extends the downside on Fed's hawkish stance

Gold price extends the downside on Fed's hawkish stance

Gold price trades with a negative bias on Thursday. The hawkish stance of the FOMC minutes from last month's meeting might cap the precious metal’s upside. Investors will focus on the first reading of US PMI data for May, due on Thursday.  

Gold News

As Ethereum spot ETF approval nears, these altcoins could explode

As Ethereum spot ETF approval nears, these altcoins could explode

It is not surprising that altcoins related to Bitcoin saw a major rally post-Bitcoin spot ETF approval. Likewise, tokens closely related to Ether could ride the ETF approval wave. Ethereum Classic, Pepe, Floki and other DeFi tokens could gain momentum as the ETH ETF approval deadline nears. 

Read more

US S&P Global PMIs Preview: Economic expansion set to persist in May

US S&P Global PMIs Preview: Economic expansion set to persist in May

On Thursday, S&P Global will issue its flash estimates of the United States (US) Purchasing Managers Indexes (PMIs), a monthly survey of business activity. The survey is separated into services and manufacturing output and aggregated into a single statistic, the Composite PMI.

Read more

Majors

Cryptocurrencies

Signatures