Economic Calendar Of The Week - May 2-6, 2016

Welcome to the Investors Trading Academy economic calendar of the week. Each week our news analysts review the upcoming economic events that you should be monitoring. With a new month there is hopes for better economic results. Last week central banks and earning were the main focus. All three banks, the US Fed, the Bank of Japan and the Bank of New Zealand all held rates and policy. Facebook and Amazon surprised the markets to the upside as a dismal earning season winds down this week. Economic data sees PMI numbers from the UK, plus Chinese PMI figures and US non-farm payrolls at the end of the week. Markets were rocked by the Bank of Japan’s decision to hold fire at its most recent meeting, and with Japanese data relatively thin on the ground we may see a recovery in the Nikkei. Elsewhere, the focus will be on crude oil, which has made new 2016 highs this week. Purchasing managers´ indices for the manufacturing and services sector scheduled for release on Tuesday and Thursday will provide further real-time readings on the current state of affairs in the British economy. Nevertheless, and as the Monetary Policy Committee pointed out at its last meeting, the uncertainty relating to the 23 June referendum can be expected to continue clouding the data. Acting as a backdrop, and as occurs on the first week of each month, the most important release by far will be Friday´s US non-farm payrolls number for April, especially given the steady stream of warnings from central bank officials stateside regarding the possibility the debt markets might be too complacent when it comes to pricing-in further rate hikes this year. Starting off the week ECB President Mario Draghi will speak in Frankfurt. He may refer to the recent criticism from Germany that the ECB’s low rates were squeezing savers. Draghi defended this policy of printing money and keeping borrowing costs at rock bottom saying this strategy proves to be affective. Draghi also called on euro zone governments to help get the region’s sluggish economy on a more solid footing through economic reforms. Market volatility is expected. Tuesday’s Asian session will be busy with Australian rate decision. The Reserve Bank of Australia maintained the official cash rate at a record low 2% for a 10th straight meeting. RBA governor Glenn Stevens stated that low inflation may prompt another rate cut to boost economic activity. Next we will have New Zealand’s jobs data. The labor market recovered in the last quarter of 2015 as unemployment plunged to a six-year low of 5.3% from 6% in the third quarter. However, the sharp decline in unemployment was also facilitated by a 0.2% fall in labor market participation. New Zealand work force increased by 0.9% to 2.369 million during the quarter. Analysts expected unemployment to rise to 6.1% and job growth to rise 0.8%. Wednesday bring up leading indicating data from ADP. U.S. private sector added 200,000 jobs in March, beating forecasts of 195,000. Private payroll figures in February were revised down to 205,000 from an originally reported 214,000 increase. The ADP reports comes ahead of the major employment release from the U.S. Labor Department, which includes both public and private-sector employment. US private sector is expected to add 205,000 new jobs in April. The global focus will shift to the US Nonfarm payroll report due Friday morning. US monthly employment release showed solid expansion in March with a rise in wages, indicating the economy remains resilient signaling the Fed to proceed with its gradual rate raise plan. Nonfarm payrolls increased 215,000 in March following a 242,000 addition in the previous month. The Fed has downgraded its economic outlook amid cheap oil prices and the strong dollar, saying it is appropriate for policymakers to “proceed cautiously in adjusting policy.” However, the positive figures in March show a positive trend in the US economy. US monthly Job growth is expected to reach 206,000 as the unemployment rate should remain at 5%. By Barry Norman, Investors Trading Academy - ITA