Look ahead: Bank of Canada rate decision; ADP; China Caixin services PMI; WHSmith; Dollar Tree
FX traders braced for a rate decision from the Bank of Canada, widely expected to cut rates by 25 bps in June. The European Central Bank is also likely to ease monetary policy on Thursday.
China’s Caixin services PMI and the ADP figures give traders a sense of how the world’s two biggest economies are faring. Look out for a trading statement from WHSmith. Dollar Tree is expected to report a 4% rise in quarterly sales.
(AI Video Summary)
China's Caixin services PMI
In your fiancial "Look ahead" to Wednesday, 5 June, major focus points include Australia's Q1 GDP, expected at a modest 0.2% growth, and China's Caixin services PMI expected at 52.6%. Volatility is noted in Hong Kong's shares amid concerns over China’s troubled property market. The US labor market data is anticipated intensely, particularly ahead of the non-farm payrolls, alongside the ADP employment changes, ISM services PMIs, and crude oil inventories.
Central bank movements
Furthermore, central bank movements are in the spotlight, especially with the ECB likely to cut interest rates, which could significantly impact EUR/USD positions. The technical analysis suggests a bullish signal for the euro, predicting an upward trajectory. Meanwhile, the Bank of Canada is also expected to cut interest rates, influencing the USD/CAD dynamics.
Corporate earnings from retailers like Dollar Tree are also key, with expected revenue growth amidst consumer spending pressures.
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