Markets closed out a very quiet trading week due to the US Thanksgiving Holiday, which encompasses much of the week in travel and culminates in ‘Black Friday’. This week will more than compensate, with an avalanche of economic data releases, from across the globe. Europe and the US will be dominated by readings on growth and inflation, which will give a great insight into how effective Central Bank monetary policy is travelling. Market expectations are for continued falls in inflation and weak growth, if not contractions, in European economic growth. The US is expected to show signs of flagging inflation and surging economic growth. The EUR will begin the week trading around 1.0900, while the GBP approaches 1.2600.
Commodity currencies have celebrated a week of recovery, with the NZD breaking back above the psychological 0.6000 ‘BIG figure’, while the AUD looks to regain 0.6600. The RBNZ meets this week and is expected to leave rates unchanged, following the trend of Central Banks internationally. There are a lot of economic releases this coming week and always a possibility of Geo-Political surprises.