Hirose News|May 5, 2014 9:00 AM

Some announcements that may impact the markets this week


Big news for this week!


Below are some announcements that may impact the markets this week:


GMT

 

 

Monday, May 05

01:30

AUD

Building Permits

09:00

EUR

Producer Price Index

14:00

USD

ISM Non-Manufacturing PMI

Tuesday, May 06

04:30

AUD

RBA Interest Rate Decision

08:00

EUR

Markit Services PMI

09:00

EUR

Retail Sales

22:45

NZD

Unemployment Rate

23:50

JPY

BoJ Monetary Policy Meeting

Wednesday, May 07

01:30

AUD

Retail Sales

06:00

EUR

Factory Orders

19:00

USD

Consumer Credit Change

Thursday, May 08

01:30

AUD

Unemployment Rate

07:15

CHF

Consumer Price Index

11:00

GBP

BoE Interest Rate Decision

11:00

GBP

BoE Asset Purchase Facility

11:45

EUR

ECB Interest Rate Decision

12:30

USD

Initial Jobless Claims

Friday, May 09

01:30

CNY

Consumer Price Index

01:30

AUD

RBA Monetary Policy Statement

06:00

EUR

Trade Balance

08:30

GBP

Industrial Production

12:30

CAD

Unemployment Rate

14:00

GBP

NIESR GDP Estimate



BoE Asset Purchase Facility


The Asset Purchase Facility is the value of money that the BoE intends to create to buy financial assets from commercial banks and other private institutions.  The reason for this action is to improve liquidity in the credit markets.  This tool is also called Quantitative Easing.  A change in stance over this figure may impact GBP significantly.


Market News


The EURUSD should have moved significantly today, according to the FX traders who are desperate for some volatility.  With Nonfarm Payrolls coming in above all expectations you would have thought it was going to be a $ long day.  Not a chance, as EURUSD fell initially when the news came out, it then gradually paired back losses (1.3865 at the time of writing).

While interest rates stay put at historic lows and Fed Chair Yellen's dovish overtures (apart from one blip...) remain the stage has been set for Treasury Yields to continue falling - this being a blow to any dollar appreciation in the near term and partly explains the EUR and GBP appreciation even while Europe is no 'bed of roses'.

 

30 Year Bond yields.

30 years.jpg