BREXIT NEGOTIATIONS FINALLY BEGIN WITH FINANCIAL MARKETS ALSO LOOKING TO KEY SPEECHES FROM CENTRAL BANK POLICY MAKERS
CENTRAL BANK SPEAKERS IN FOCUS
Central Bank speakers from the U.S Federal Reserve, RBA, Bank of England, Swiss National Bank and Reserve Bank of New Zealand headline a busy economic calendar this week.
The United Kingdom is also set to begin Brexit negotiations with the European Union this week, against a backdrop of political uncertainty in British politics.
Monday, June 19th, FOMC Member William Dudley Speaks
Federal Reserve Bank of New York and vice-chairman of the Federal Open Market Committee William C. Dudley holds a speech on his current assessment of the U.S economy.
William Dudley is known as a hawkish member of the FOMC, with views similar to Chair Janet Yellen. His speech takes on extra significance after the Federal Reserve recently raised U.S interest rates 0.25 basis points.
Tuesday 20th June, RBA Minutes Release
SNB, BOE, FOMC Speakers
The Reserve Bank of Australia Monetary Policy Meeting Minutes are a detailed record of the bank's most recent policy-setting meeting, containing in-depth insights into the economic conditions that influenced the recent rate decision.
Thomas Jordan, the Chairman of the Swiss National Bank holds a key speech on the Swiss economy, with financial markets looking for any comments about the current value of Swiss Franc.
Bank of England Governor Mark Carney delivers his postponed mansion day speech, with FOMC speakers Richard Fisher and Robert Kaplan also speaking on the same day.
Wednesday 21st June, RBNZ Rate Decision And Policy Statement
The Reserve Bank of New Zealand is largely expected to keep interest rates unchanged at 1.75%, against a backdrop of improving economic data.
The policy statement is likely to convey to investors a neutral monetary policy stance, with risks slightly tilted to the upside for the domestic economy. The statement will also discuss the RNBZ's current economic outlook, and offer clues on the outcome of future votes.
Thursday 22nd June, Canadian Retail Sales
Canadian retail sales are expected to show an increase of 0.7%, against the previous month's figure of –0.2%.
This month's retail sales figure release comes at a time when the Canadian dollar has started to move higher against the U.S dollar. The Bank of Canada's top two officials noted that rate cuts put in place in 2015 have largely done their work, sending the Canadian dollar higher, and how Canadian policymakers will assess whether rates need to be kept at near-record lows.
Friday 23rd June, German Manufacturing PMI
Germany releases a snapshot of its domestic manufacturing sector, with the release of the June Purchasing Managers Index. The PMI measures the level of activity for purchasing managers in the manufacturing sector.
A reading above 50 indicates expansion in the sector, below 50 indicates a contraction. Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.