The USD was steady against the other major currencies in quiet trade on Friday with many markets closed for the Easter holidays, as better-than-forecast US data supported the dollar. Data on Friday showed that US consumer sentiment rose in March from February. The University of Michigan’s consumer sentiment index came in at 78.6, up sharply from the preliminary reading of 71.8, and above expectations for a reading of 72.5. Sentiment on the single currency remained fragile amid concerns over the situation in Cyprus and ongoing political uncertainty in Italy. Banks in Cyprus reopened for the first time in almost two weeks on Thursday with strict capital controls. Investors remained wary that the bailout deal for Cyprus could set a precedent for future bailouts in larger euro zone states, with big bank depositors and senior bond holders forced to suffer losses. Italy saw borrowing costs edge higher amid growing doubts over whether a stable coalition government can be formed amid political deadlock.
In the week ahead investors will be focusing the outcome of policy meetings by the Bank of Japan, European Central Bank, Bank of England and Reserve Bank of Australia. In the US is scheduled to release government report on nonfarm payrolls on Friday.
Monday, April 1
China is to release official data on manufacturing activity, a leading indicator of economic health. Markets in Australia, New Zealand, Switzerland, Germany, Italy, France and the U.K. are closed for Easter Monday. In the US, the Institute of Supply Management is to release a report on manufacturing activity, a leading economic indicator.
Tuesday, April 2
Japan is to release official data on average cash earnings. The RBA is to announce its benchmark interest rate. The announcement is to be accompanied by the bank’s rate statement, which contains important insights into economic conditions from the bank’s perspective. Germany is to release preliminary data on consumer price inflation, which accounts for the majority of overall inflation. Spain is to produce government data on the change in the number of people unemployed, a leading indicator of economic health. Spain and Italy are to publish reports on manufacturing activity. The euro zone is to publish official data on the unemployment rate across the currency bloc. Switzerland is to publish its SVME PMI, a leading economic indicator. The UK is to release a report on manufacturing activity and government data on net lending to individuals. The US is to publish official data on factory orders, a leading indicator of production.
Wednesday, April 3
Australia is to release official data on the trade balance, the difference in value between imports and exports. The UK is to produce a report on construction sector activity, a leading economic indicator. The euro zone is to release preliminary data on consumer price inflation, which accounts for the majority of overall inflation. The US is to release data on ADP nonfarm payrolls, which outlines private sector job creation and leads government data by two days. The US is also to produce official data on crude oil stockpiles, while the ISM is to release a report on service sector activity, a leading indicator of economic health.
Thursday, April 4
Markets in China are to remain closed for a national holiday. Australia is to release government data on building permits and retail sales, the government measure of consumer spending, which accounts for the majority of economic activity. The BoJ is to announce its benchmark interest rate. The announcement is to be accompanied by the bank’s rate statement, which contains important insights into economic conditions from the bank’s perspective. Spain and Italy are to release data on service sector activity, while the euro zone is to produce revised data on service sector activity across the currency bloc. The UK is to publish a report on service sector activity, while the BoE is to announce its benchmark interest rate and publish its rate statement. The ECB is also to announce its benchmark interest rate and release its monetary policy statement. The announcement is to be followed by a press conference with ECB President Mario Draghi. The US is to release the weekly government report on initial jobless claims. Federal Reserve Chairman Ben Bernanke is to speak; his comments will be closely watched for any indications on the future possible direction of monetary policy.
Friday, April 5
Markets in China are to remain closed for a national holiday. The Swiss National Bank is to publish official data on foreign currency reserves. This data is closely watched for indications of the scale of the bank’s currency market operations. The euro zone is to release official data on retail sales and revised data on fourth quarter economic growth. Germany is to publish official data on factory orders, a leading indicator of production. Canada is to publish official data on the trade balance, the change in the number of people employed and the unemployment rate as well as the Ivey PMI. The US is to round up the week with the closely watched government report on nonfarm payrolls and the unemployment rate, as well as data on average hourly earnings and the trade balance.
EasyForexNews Research Team