Financial Market Preview for April 20-24

The U.S. dollar took another tumble against leading currencies such as Euro, Japanese yen and Aussie dollar. On this week’s agenda in the U.S: Durable goods, existing home sales, and jobless claims. In Europe: Euro group meetings, BOE rate decision, German economic sentiment, EU manufacturing PMI, and GB retail sales. In Asia: China’s manufacturing PMI (HSBC) and Japan’s trade balance will be released this week.  So let’s review the main events and reports for the week of April 20th to April 24th:

(All times GMT):

Monday, April 20th

15:05 –BOC Governor Poloz Speaks: The Governor will participate in a panel discussion at the Bloomberg Americas Monetary Summit, in New York;

15:30 –Governor Stevens speaks: Reserve Bank of Australia Governor is due to speak at the American Australian Association luncheon hosted by Goldman Sachs, in New York;

00:30 – Minutes of Reserve Bank of Australia’s Monetary Policy Meeting: The Reserve Bank of Australia maintained its cash rate at 2.25%; the minutes will provide additional information behind the no cut decision;

Tuesday, April 21st

10:00 – German ZEW economic sentiment: This report will refer to the ZEW indicator of economic sentiment for Germany for March. Back in February, the ZEW indicator for Germany increased again to 54.8 points; if Germany’s economic sentiment keeps rising, this may imply a recovery in Germany’s economic sentiment;

21:00 – Canada’s Annual Budget: This will show the Federal government’s budget for this year;

23:50 – Japanese Trade balance: Back in January 2015 the Japanese trade balance deficit expanded to 640 billion yen (roughly $5.42 billion) deficit (seasonally adjusted figures). Japan is among the leading importers of commodities, including crude oil and gold; its trade balance could offer information vis-à-vis Japan’s developments in its demand for goods and services;

Wednesday, April 22nd

00:30 – Australia’s CPI: According to the last quarterly report, the CPI grew by 0.2%, Q-o-Q. The current expectations are for the next report to show a 0.1% quarterly gain;

09:30 –MPC Asset Purchase and Rate Votes: In the latest MPC meeting, the Bank maintained its rate at 0.5% and the asset purchase program at £375 billion; the major change in MPC’s policy is currently expected to occur in the coming months after next month’s elections in the UK;

15:00 – U.S. Existing Home Sales: This report will refer to the U.S. existing home sales for March 2015; in the previous report regarding February, the number of homes sold rose to a seasonally adjusted annual rate of 4.88 million houses; the current expectations are for the annul rate to pick up to 5.04 million houses;

15:30 – U.S Crude Oil Stockpiles Weekly Report: The Energy Information Administration will release its weekly report on the U.S oil and petroleum stockpiles for the week ending on April 17th;

Thursday, April 23rd

02:45 – China Manufacturing PMI (flash): HSBC will release its flash manufacturing PMI survey for April. Last month’s report regarding March 2015, the Manufacturing PMI slipped to 49.2 – i.e. China’s manufacturing sectors is contracting. The current expectations are for this index to inch up to 49.4. If the PMI index doesn’t pass the 50 mark, it will suggest China’s manufacturing sector isn’t expanding;

09:00 – Flash German, French and Euro Zone Manufacturing PMI: In the recent monthly update regarding March 2015, France’s PMI rose to 48.2 i.e. the manufacturing conditions are still contracting but at a slower pace. Germany’s PMI rose to 52.4 – the industry is growing faster. This time, the estimates are for the German PMI to further rise to 53.1. This news, in turn, may move the Euro;

09:30 – Great Britain Retail Sales: According to last month’s report, retail sales in Great Britain rose by 0.7%;

13:30 – U.S. Jobless Claims Weekly Report:  This weekly report will pertain to the changes in the initial jobless claims for the week ending on April 17th; in the last report the jobless claims slightly grew to 294K;

15:30 – EIA U.S. Natural Gas Storage: The EIA weekly report of the U.S. natural gas market will pertain to the latest developments in natural gas production, storage, consumption and rates as of April 17th;

Friday, April 24th

09:00 – German Ifo Business Climate Index: The index consists of the difference (on a monthly basis) in the manufacturers, builders, wholesalers, and retailers in Germany as of April. In the March update, the business climate index rallied to 107.9 – the current expectations are that the index will rise to 108.5;

All Day – Euro-group Meetings: These meetings are held in Brussels and include meetings among Euro-group President, Finance Ministers from euro area member states, the Commissioner for economic and monetary affairs, and the President of the European Central Bank;

13:30 – U.S Core Durable Goods: This monthly report refers to March and will indicate the developments in U.S demand for commodities including oil and gas. As of February 2015, new orders of manufactured durable goods slipped by 0.4%, month over month; current estimates are for a 0.2% gain;

15:30 –BOC Governor Poloz Speaks: The Governor will participate in a panel discussion at the Export-Import Bank of the United States, in Washington DC;

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