Equity markets slid sharply into yesterday’s close ahead of Fed Chair Powell’s second congressional testimony. Today he sits in front of the Senate Banking Committee at 9:00 a.m. Central. He commented earlier in the week that the economic outlook is strong and warrants further gradual rate hikes.
U.S. earnings are key on Tuesday as the euro edges higher on strong Purchasing Managers' Index (PMI) data and gains appear capped ahead of European Central Bank (ECB) decision.
The dollar has turned modestly lower after starting the day firmer following yesterday’s gains on the back of a solid ISM manufacturing PMI report.
AUD slips as RBA maintains neutral stance; Spanish unemployment and UK construction eyed; potential future Fed Chair due to speak later.
It hasn’t been a good week for the pound so far. Ongoing uncertainty over Brexit negotiations and weak economic data have overshadowed the recent hawkish talk from the Bank of England.
Sterling got off to a rough start during Monday’s trading session after weaker than expected data from Britain’s manufacturing sector, suggested that the economy could be losing momentum.
It promises to be another very busy week in the markets, with particular focus falling on the economic data, the most notable will come on Friday in the form of the U.S. jobs report.
As we enter the business end of the week, the United States will be in focus with a large number of data scheduled to be released including some important labor market numbers and surveys on the services sector.
European equity markets are expected to open a little higher on Monday as traders await a selection of manufacturing PMI reports from across Europe as well as some unemployment data.
Market events to watch this week.