Monday the first trading day of the new week of trading has scheduled very few risk events that can be the catalyst for some volatility in the Forex market. The only notable risk events are coming from the Asia session and European session:
02:30 – The Chinese CPI inflation figures are expected to come flat -0.1%, while the annualized rate is expected to come unchanged at 5.5%.
07:00 – During the European session Germany Trade Balance figures is the most important risk event. Germany is forecasted to publish an €20.3B surplus in May.
11:00 – The UK Prime Minister Theresa May is expected to deliver a speech covering issues of the country's foreign policy.
During the New York session two Fed policy members are scheduled to speak.
17:30 – Fed’s policy member Brainard hold a speech at the New York Fed conference
18:20 - Minneapolis Federal Reserve Bank President Neel Kashkari will speak at the Minnesota Women's Economic Roundtable.
1:45 – The main risk event during the London session is the UK Unemployment rate, which based on the market consensus we should expect a flat reading of 4.6%. The Claimant Count Change is expected to rise by 10.5k.
15:00 – The Fed chairman Janet Yellen is due to testify before the US Congress. The hearings will be followed by a Q&A session.
15:00 – The BOC interest rate decision will be the highlight of the day for the Canadian Dollar. Based on the market consensus the BOC is expected to hike rates from historical low levels of 0.5% by a quarter of a point.
15:30 – The BOC interest rate decision is followed by the BOC Governor Poloz press conference.
04:30 – Early during the Asia session we have the Chinese Trade Balance figures. The market forecast sees China surplus rising to $42.44B.
07:00 – During the European session we have Germany CPI inflation figures. The general consensus is for a flat reading of 0.2% May inflation reading and 1.6% annualized inflation reading.
11:30 – US Initial Jobless Claims will set the mood for the US dollar.
15:00 - The Fed chairman Janet Yellen is due to testify before the US Congress for the second day.
The European session will be half closed due to the French National day as banks will be closed. However, the US session will compensate the lack of news events with the following risk events:
01:30 – The US Retail sales are expected to inch higher from -0.3% up to 0.1%.
01:30 – The US CPI inflation figures, based on the market consensus the Jun inflation reading will disappoint coming lower at 1.7%. The annualized CPI inflation reading is also expected to come flat at 1.7%
15:00 – We close the week with the US Business Inventories figures.