NFP and central banks in focus

Weekly Report - 30/07/2018

Non Farm Payroll

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The highlight last week was the US GDP for the second quarter. The number came out above 4 percent for the first time since 2014. However, the print was lower than economists’ expectations.

The Week that was


President Trump tweeting ahead of the GDP release that it will be a strong number most probably over-hyped it and may have contributed to underwhelming the market, which sold off the dollar immediately after the data was released. The 4.1% reading was one-tenth less than consensus. The ECB was also in focus last week. As expected, monetary policy was left unchanged, while the central bank’s President Mario Draghi said nothing new during the press conference. This led to a high selloff in the euro on Thursday.

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Main Focus This Week


This week is a big one for major central banks. The Bank of Japan kicks off with its policy announcement on Tuesday, followed by the Fed on Wednesday and finally the Bank of England on Thursday. The latter will be closely watched as it is widely expected that the BOE will raise rates to 0.75 percent from 0.50 percent. To close off the week, the all-important US jobs report is out on Friday. Most estimates for July are below the previous print of 213,000 jobs.

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