The week will be a busy one from the point of view of US monetary policy indications (yet again), as we receive data on the state of the US economy via manufacturing and non‐manufacturing ISM and crucial nonfarm payrolls data for June. This will continue to colour the US monetary policy outlook, following on a week of speeches that saw Fed policymakers try to tone down the market’s reaction to the suggestion of Fed tapering on the (as of yet still uncertain) horizon. Though a better read on the ISM, and more importantly on the nonfarm payroll number, will be an economically speaking “good” result, it will unfortunately pressure further Asian asset markets.
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Scotiabank