Events to Look Out For Next Week

  • Interest Rate Decision and Monetary Policy Statement (AUD, GMT 04:30) – Positioning in 30-day interbank cash rate futures this week implied a 60% chance for the RBA to cut its benchmark interest rate to zero from 0.25% at the upcoming policy meeting, which is up from odds of 31% for such a move that were being discounted just over a week ago. However in the March RBA minutes, they provided colour around the 25bp rate cut and the adoption of QE but they made clear that there is no appetite for negative interest rates.
  • JOLTS Job Openings (USD, GMT 14:00) – JOLTS define Job Openings as all positions that have not been filled on the last business day of the month. February’s JOLTS job openings is expected to fall slightly at 6.476M, following the 6.963M in January.
  • Ivey PMI (CAD, GMT 15:00) – A survey of purchasing managers, the Index provides an overview of the state of business conditions in the country.
  • API weekly Crude Oil Stocks (USOIL, GMT 20:30)

Wednesday – 08 April 2020

  • EIA weekly Crude Oil Stocks Change (USOIL, GMT 14:30)
  • FOMC Minutes (USD, GMT 18:00) – The FOMC Minutes report provides the FOMC Members’ opinions regarding the US economic outlook and any views regarding future rate hikes. In the last FOMC statement, on March 15, the FOMC slashed rates 100 bps to 0% – 0.25% in an emergency move, getting ahead of the curve.

Thursday – 09 April 2020

  • ECB Monetary Policy Meeting Accounts (EUR, GMT 11:30) – The ECB Monetary Policy Meeting Accounts provide information with regards to the policymakers’ rationale behind their decisions. At the same time, in the last meeting, ECB announced a EUR 750 bln pandemic emergency program (PEPP) and introduced new QE measures worth EUR 120 bln and additional loan programs, while they left rates unchanged at the March policy meeting.
  • Producer Price Index (USD, GMT 12:30) – The Headline PPI is expected to decline to a -0.2% March PPI headline with a 0.2% increase in the core index. The continued energy price pull-back through the month likely weighed on the headline.
  • Employment Change (CAD, GMT 12:30) – Employment change is seen spiking to 10.0k in the number of employed people in March, compared to the spike at 30.3k in February. The unemployment rate is expected to remain at 5.6%.
  • Michigan Consumer Sentiment Index (USD, GMT 14:00) – The preliminary April Michigan sentiment reading is forecast at 95, up from the 89.1 in March.

Friday – 10 April 2020

  • Consumer Price Index (CNY, GMT 01:30) – The March’s Chinese CPI is expected to remain unchanged on a monthly and yearly basis.
  • Consumer Price Index and Core (USD, GMT 12:30) – The headline CPI has been estimated to a -0.2% March headline CPI drop with a 0.2% core price increase, following respective February readings of 0.1% and 0.2%. As with PPI, the headline inflation figures will be depressed well into 2020 from the OPEC price war, though the core figures will face divergent pressures that are partly downward due to diminished demand with COVID-19, but upward due to supply shortages that may prompt some erratic swings.

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Andria Pichidi

Market Analyst

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