By TraderVox.com
Tradervox (Dublin) – With the FMOC minutes casting doubt on the prospects of QE3 and the low employment in March resuscitating concerns on QE3; the speech by Ben S. Bernanke on Monday and Friday, and US trade balance and the jobless claims will be the major event for the dollar. However, other events that will affect the forex market over this week include the Japan rate decision on Tuesday. The BOJ has decided to refrain from stimulus hence boosting the yen which has increased against major currencies. The Australian dollar which had increased on the prospects of another stimulus declined after the news hit the market.
However, the Australia Employment Data which is expected to be released on Thursday at 1:30 GMT is expected to show an addition of 6,700 jobs after the job market contracted in February where 15,400 people are said to have lost their jobs the unemployment rate increased from 5.1 percent in January to 5.2 percent in February. The upward trend of unemployment rate is expected to continue with analysts talking of about 5.3 percent.
Another report expected on Thursday is the US Producer price Index. In February, the PPI inflation by 0.4 percent from 0.1 percent registered in January. Analysts are noticing that the PPI is increasing more than the Fed’s prediction but they are saying this is due to energy prices which is just temporary. These readings and positive job market reports are expected to ease the QE3 prospects. The index is expected to register an increase of 0.3 percent. This report will be released at the same time as the US Trade Balance report which is expected to show that trade deficit narrowed to $51.9 billion and the US unemployment claims expected to register another drop to 355,000. The reports will be released at 12:30 GMT on Thursday.
On Friday, the US Prelim UOM Consumer sentiment report to be released at 13:55 GMT and the Ben S. Bernanke speech at 17:00 GMT is expected to be the main events of the day. The US Prelim consumer sentiment report is expected to show an increase to 76.5 indicating that consumers still remain optimistic. Ben S. Bernanke is expected to talk in New York.
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