Nonfarm Payrolls and ECB take the spotlight - Nomura

FXStreet (Guatemala) - Analysts at Nomura noted the key events taking place for the week ahead.

Key Quotes:

"Next Week’s Headline Events (all times are GMT) 1. NFP (Friday 13:30); ADP (Wednesday 13:15) 2. GDP data: Sweden (Monday 08:30); Switzerland (Tuesday 06:45); Canada (Tuesday 13:30); Australia (Wednesday 00:30) 3. China Manufacturing PMI (Tuesday 01:00) 4. Central Banks: RBA (Tuesday 3:30); BOC (Wednesday 15:00); ECB (Thursday 12:45); 5. Fed’s Yellen Speaks to Economic Club of Washington (Wednesday 16:00).

In the US, the highlight of the week is likely to be NFP on Friday; the last print was very strong, which pushed up the likelihood of a December rate hike (see October Jobs Report Positive All Around, 6 November 2015). The October jobs report was broadly positive, as job gains rebounded strongly, the unemployment rate continued to trend lower, and average hourly earnings accelerated. The incoming data on labor markets in November point to a slower pace of job gains than the 271k total gain in October. On balance, we forecast total NFP will gain 180k jobs in November, with the unemployment rate remaining at 5.0%.

With ECB Draghi’s testimony before the European Parliament having intensified the dovish rhetoric, the ECB board has yet to push back against market expectations (in particular for a deposit rate cut), and we believe it will be difficult for the Governing Council to willingly “under-deliver” at a time when it remains concerned about inflation expectations and its credibility in meeting its mandate (see Dovish Draghi suggests broader package of measures on 3 December, 12 November 2015). Specifically, we expect the ECB to cut the deposit rate by 10bp to -0.30% and to extend QE until at least end of “June 2017 or beyond."

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD falls toward 1.19 after robust US Nonfarm Payrolls data

EUR/USD is trading above 1.19 after dipping below that number in response to the US Nonfarm Payrolls, which showed an increase of 379K jobs in February. Higher yields in response to Powell are keeping the dollar bid.


GBP/USD recovers after post-NFP dip below 1.38

GBP/USD is trading above 1.38 bus till down the day. The US gained 379.000 jobs, roughly double than expected and supporting the dollar. The Senate's stimulus debate is eyed.


XAU/USD battles 1700 level

Gold is staging a rebound toward $1,700 amid proift-taking ahead of the weekend but remains on track to close the third straight week in the negative territory.

Gold News

Ethereum price primed for a swift recovery as the network prepares for a major update in July

Ethereum price aims for a significant recovery towards $2,000. A major upgrade scheduled for July intends to fix the problem with gas fees on Ethereum. ETH miners are not happy with the decision.

Read more

US Dollar Index pushes higher to 92.20 on stellar Payrolls

The march north in the greenback remains unabated and trade in fresh 2021 highs beyond the 92.00 hurdle when tracked by the US Dollar Index (DXY).

US Dollar Index News