There are 2 key economic events this week with one arriving on Thursday and the other on Friday’s session. Both could produce strong market reactions and will likely ensure the week closes on an interesting note.
Firstly, the Bank of England will provide an announcement on monetary policy on Thursday. It’s widely anticipated the UK central bank will acknowledge the significant improvement in the economy, which might lead them on to the topic of stimulus. Unlike the ECB and Fed, the Bank of England did not opt for open-ended quantitative easing, they decided to set parameters. In this context, they may choose to redefine these targets.
Secondly, Friday sees the April US non-farm payroll report. It’s forecast that 978,000 jobs will have been added to the economy following March’s strong 916K print. The unemployment level is also expected to fall to 5.7% from 6%. Such a strong report would certainly give the greenback a good reason to rally.
Have a nice week.
Written by Viv Savani. 7:57am, May 4th 2021
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