Weekly News 02.09–06.09.2019

Introducing the most complete review of the upcoming week from analysts Olymp Trade

Although Monday is a day off in the US and Canada, the week is going to be quite intense. The US releases the August data on Nonfarm Payroll, as well as the services PMI. The Bank of Canada and RBA release interest rate decisions. Markets are waiting for the latest data on Germany’s manufacturing PMI.


September 2. PMI in Germany. A Day off in the US and Canada

Germany releases the August data on manufacturing PMI at 07:55 GMT. The IFO experts reportedly had noted that the country is sliding into recession. And the fresh data on the PMI is unlikely to make the market more optimistic.

Due to Labor Day, US and Canadian exchanges will be off work. Accordingly, the volatility will be low in the Forex market, and stocks will not be traded during the US trading session.


September 3. PBA’s interest rate decision. A working week in the British Parliament

The Reserve Bank of Australia published its interest rate decision at 04:30 GMT. Traders do not expect changes as no such changes have been made by the U.S. Federal Reserve System, and the global trade is in a mess. Philip Lowe, the Governor of the RBA, has recently stated that what is happening in the world economy is putting it at great risk

The summer break of the British Parliament is nearly over. However, they will not be able to work for a long time. On 28 July, Prime Minister Boris Johnson asked the Queen to prorogue parliament from 9 September to October 14 to avoid another postponement of Brexit.

Fierce political debates are expected to take place during the last working week, and lead to increased volatility in the markets.


September 4. The Bank of Canada’s decision. “Seoul Defense Dialogue”

The Bank of Canada releases its interest rate decision at 14:00 GMT. The indicator is expected to be kept unchanged at the level of 1.75%. The Canadian economy is able to withstand global problems, so the Bank is in no rush to soften the monetary policy.

On September 4-6, the capital of South Korea hosts “Seoul Defence Dialogue”—the eighth international conference on the security and reducing the role of nuclear weapons in Asia and the Pacific region. A delegation of North Korean government may be invited to the event.


September 5. US PMI. Wildfires in Amazonia

The US releases its services PMI at 14:00 GMT. Analysts expect a result of 54.1. The latest reading came out at 53.7, which was the second consecutive decline. If this trend continues, it will be a strong negative signal for the country’s economy.

Brazilian President Jair Bolsonaro is to present a plan to fight the large-scale forest fires in the Amazon by September 5. We remind you that the emergency situation in one of the largest countries of South America was one of the topics discussed at the G7 summit.

Bolsonaro had earlier rejected an offer of financial support made by the European Union, and was criticized for it.


September 6. Nonfarm Payroll

The US releases its regular report on nonfarm payroll at 12:30 GMT. Both the Fed and the US government keep stating that the country’s labor market is still strong. This time, experts lowered their expectations to the 2 years’ low of 155,000 jobs.

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