FX Trading Thinned by Holidays

Germany Market Closed for Holiday
UK Market Closed for Holiday
Swiss Market Closed for Holiday
US Market Closed in Observance of Memorial Day

The foreign exchange market will be off to a slow start with several markets closed for holiday on Monday, including Swiss, Germany, UK and the US. However, the economic calendar is stacked with key reports this week and culminates with the closely anticipated US labor report on Friday. Currency movements have predominantly been dictated by sentiment over the outlook for global central banks and should continue to prevail in the coming week.

Some key highlights will be the Bank of Canada’s rate decision on Tuesday, Eurozone money supply, Germany’s unemployment report, Canada’s March GDP, US Q1 GDP, Eurozone Q1 GDP, and manufacturing reports from the US, Japan, UK and Eurozone. Although the BoC is not seen raising rates this week from 4.25%, the policy statement will be closely scrutinized given the recent uptick in Canada’s consumer price inflation as traders gauge whether additional tightening is a possibility. Meanwhile, the growth rates from Swiss, Canada, Eurozone, and US will also be analyzed, with GDP in the Eurozone seen outpacing its counterparts, effectively providing the ECB with additional room to tighten.