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5 Market Moves to Look Out for This Week - 31/5/21

5 Market Movers to Look Out for This Week – 31/5/21

By Mateo Jarrin Cuvi

No earnings reports this week but still plenty of action for all of you traders to get your groove on!

down-under

It’s Getting Hot Down Under!

Australia’s Interest Rates have been kept at the historic low level of 0.1% by the Reserve Bank of Australia (RBA) despite the housing market booming, with prices and housing credits picking up plenty of momentum.

Discussing the RBA’s decision to leave the interest rate untouched in early May, Shane Oliver, a Chief Economist with AMP Capital, said, “While the economy is recovering faster than expected, the RBA is still a long way away from seeing its stated requirements for a rate hike – [those] being a tight jobs market, wages growth well above 3 percent and actual inflation sustainably within the 2-3 per cent target range.”

Will the RBA reverse course this time around and increase its interest rates to cool things down?

Or is that 0.1% mark here to stay for the unforeseeable future?

Find out on Tuesday, June 1st at 4:30 am GMT and line up your AUD trades!

purchasing-managers

Managers Purchasing Things. Times Two.

We’ve got a double Purchasing Managers Index (PMI) for you on Tuesday, June 1st!

What: EU Final Manufacturing PMI
When: 8 am GMT

Europe’s manufacturing PMI is heading in the right direction after posting a final figure of 62.9 in April, its highest ever recorded level since this stat started being tracked back in 1997.

Germany has been performing admirably well with its PMI for April clocking in at 66.4 spurred by growing demand from both the US and China.

What: US ISM Manufacturing PMI
When: 2:00 pm GMT

After hitting a 38-year high in March, the US PMI scaled back down to 60.7. Companies continue to have a hard time keeping up with rising demand as a result of the successful vaccination campaign and the reopening of the economy.

However, if it’s any indication of what’s to come, IHS Markit’s composite PMI for the US shattered all sorts of records, reaching 68.1 for May on the back of a 70.1 reading for the recovering American services sector.

Let’s see whether ISM’s figures this week reflect this trend.

Keep your eyes open for these latest statistics and get ready to trade EUR and USD!

floodgates

It’s Time to Open the Floodgates

What surprises will OPEC have in store for us when they host their 17th Ministerial Meeting all day on Tuesday, June 1st?

Will OPEC follow through with its plan to return over 1 million barrels per day to the market as promised during their prior meeting?

Consumption has been steadying itself and increasing across the globe, a tendency that might push OPEC to stay on course and continue to restore production during the summer months.

Following the decision in April, OPEC’s oil production will already be boosted by 350,000 barrels per day in May and June and an additional 400,000 the following month.

If one adds Saudi Arabia’s vow to increase production by 1 million barrels during the next several months, then OPEC (plus friends) will be adding close to 2.1 million barrels to the market in the foreseeable future.

As explained by Yahoo! Finance, this move shows “the confidence of the leaders of the OPEC+ alliance that the market would be able to absorb that much supply as vaccination programs are accelerating and people start traveling more.”

In any case, pay close attention to the bits of news that will filter out of these proceedings and prepare your crude oil trades.

mouse

Aussie GDP’s on the Mend!

Australia’s economy is in recovery mode following a drawn-out battle against COVID-19.

Q4 2020 saw a 3.1% quarter-on-quarter rise in GDP on the back of a robust labor market, rising wages, and an increase in private capital expenditure.

Is more of this expected for Q1 2021?

If Australian business investment figures are any indication, things are looking up for Aussie GDP.

According to Reuters, “Australian business investment jumped by the most in almost a decade in the first quarter as businesses took advantage of tax breaks to buy new machinery.”

Additionally, capital expenditures in March pushed up by 6.3%, its highest reading since 2011, while investment in machinery and buildings rose by 9.1% and 3.8%, respectively.

Tune in on Wednesday, June 2nd at 1:30 am GMT to find out where Aussie GDP is headed and open an AUD position or two!

expectations

Time to Taper Our Job Expectations?

April was a rough month for the US Nonfarm Payrolls (NFP), only adding about 230 thousand jobs when close to a million were expected.

Goldman Sachs pointed to the “unusually generous unemployment benefits and lingering virus-related impediments to working” for the calamitous numbers seen in April.

As a result, the investment banking giant does not expect the US government to start tapering before 2022 rolls around.

One of the main questions that has popped up from April’s results is whether the US labor force is willing and able to return to their jobs.

Additionally, unless there’s a pickup in wage growth in the labor market, there will not be a sustainable hike in inflation.

Will things be any different for May?

Analysts expect an additional 620 thousand jobs for the month, but considering April’s unpleasant surprise, who really knows.

Check out the NFP on Friday, June 4th at 12:30 pm GMT and trade away as this is one of the market’s main movers!

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*Any opinions, news, research, analyses, prices or other information contained here are provided as general market commentary and do not constitute investment advice. FXPRIMUS does not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.


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