As we near the first week of July, a number of important economic indicators promise to help dictate market sentiment in the days and weeks ahead. The U.S. will have important data churned out, such as Nonfarm Payrolls and unemployment rate, on July 3. At the same time, the German labor market report and a series of Eurozone-wide reports will continue to shed light on economic health across the pond.
Then on July 1, Germany will release its monthly labor market report, which is expected to show the country continuing to dodge the negative employment trends. This report features the final HCOB Manufacturing PMI for Germany and the overall Eurozone. You’ll find the core inflation rate for the euro monetary bloc thrown in for good measure. These cash and deposit figures will likely be very important in assessing economic stability across Europe.
Then on the same day, the European Central Bank (ECB) Forum on Central Banking will take place. This forum will bring together central bankers and financial experts to discuss monetary policy and economic outlooks, potentially influencing market volatility.
Here at home in the United States, observers will be watching a barrage of economic reports due out on July 3. Of all the major economic indicators, the Nonfarm Payrolls report is probably the most important, as it offers a glimpse into the growth of our nation’s jobs. Analysts will closely examine this data to gauge the health of the labor market and its implications for the economy.
On July 3, the monthly unemployment rate will be announced. Factory orders, final S&P Global Services PMI, balance of trade results, initial jobless claims, ISM Services PMI come in right behind it. Yet, strangely enough, each of these reports collectively paints a pretty detailed picture of U.S. economic activity. They underscore the flimsy state of the labor market.
Throughout all of these major shifts, the Australian dollar (AUD) has held up quite well. The AUD/USD currency pair is on a four-month winning streak and it has been consolidating above the 0.6500 handle. Seen in isolation, this upward momentum suggests a continued appreciation of the Australian dollar against its U.S. counterpart, showcasing investor bullishness for Australia’s economic fortunes.
On Tuesday, MBA mortgage applications data. This data will provide a glimpse of the housing market’s overall health and consumers’ level of confidence in securing a mortgage. With interest rates already a fear on the investor side, this information may have an outsized impact on market action.