Economic Calendar Of The Week - June 6-10, 2016

Welcome to the Investors Trading Academy economic calendar of the week. Each week our news analysts review the upcoming economic events that you should be monitoring. In the wake of the latest much weaker-than-expected US jobs report, the focus in the coming week would likely be on US Federal Reserve chair Janet Yellen´s speech on Monday. For some economists, May´s US non-farm payrolls report flagged the risk of that country possibly slipping into a so-called 'technical recession' in just over one year´s time. The dollar crashed on the NFP in a week that was tense until this big event. Speeches this week by Janet Yellen and Mario Draghi, Australian and New Zealand’s rate decisions stand out now. Against that backdrop, traders would also be waiting on a steady trickle of economic releases from the People´s Republic of China, including the latest foreign exchange reserves data (Monday), foreign trade numbers (on Wednesday), CPI and PPI (on Thursday) and figures on industrial production and investment in two Sundays´ time. A barrage of tier-one Japanese indicators on the country´s current account, foreign trade and gross domestic product - on Wednesday - might also help shape expectations for Tokyo´s next policy steps, especially those of the Bank of Japan. Significantly, both Australia and New Zealand´s central banks were set to announce their latest policy decisions on Tuesday and Wednesday, respectively. Data on industrial production were also set for release in the UK, France and Italy. On Monday Federal Reserve Chair Janet Yellen will give a talk about the economic outlook and monetary policy in Philadelphia. Yellen may address the recent plunge in the US employment report and give clues about the Fed’s monetary policy intentions in the coming weeks. Market volatility is expected. Tuesday’s big event is the Reserve Bank of Australia rate decision. The RBA cut its official cash rate by 25 basis points in May reaching a historic low of 1.75 %. This was the first change since May 2015, when rates were cut 25 basis points to 2%. The rate cut took the market by surprise. RBA Governor Glenn Stevens said weak inflation was the main reason for this move. Stevens also noted that global economic continued to grow at a slower pace than expected. Wednesday starts out with China, the world’s second largest economy has been worrying markets for quite some time with lower economic activity. The bottom line figure of the trade balance report is less important than the changes in imports and exports. Higher levels on both figures is good news for the world and a more “risk on” atmosphere which is favorable for commodity currencies. And a drop in exports and imports is negative. Following Tuesday RBA decision comes its cousin the RBNZ. The Reserve Bank of New Zealand kept interest rates on hold in April, the decision was in line with market forecast. The bank stated that further policy easing may be required to ensure the pace of inflation reaches the middle of the target range. Global growth outlook remained a concern mainly due to weaker economic activity in China and other emerging markets. Domestic economy is reliant on strong inward migration construction activity, tourism and an accommodative policy. Inflation remains weak mostly due to low energy and import prices. ECB President Mario Draghi will speak at the Brussels Economic Forum on Thursday. After keeping rates unchanged in June, Draghi asked for patience saying the balance of economic risks has improved after the recent monetary policy measures taken. Market volatility is expected. By Barry Norman, Investors Trading Academy - ITA