The week that has been was highlighted by Central Bank activity and their outlooks for their respective economies. The FOMC (Fed's) meeting culminated in an expected interest rate rise and signalled growth in the US economy warranted further hikes and a return to 'normalised' monetary policy. This has the effect of supporting the Dollar as bond yields become more attractive. The Bank of England left rates unchanged but board members recognised growing inflationary pressures in the economy. This lent some support to a much-damaged currency after the election failed to install certainty in the UK Parliament. The EU CPI data contracted, contradicting strong recent economic data and hitting the single currency. The EUR opens the week around 1.1200, while the GBP rebounded to 1.2800, despite terror attacks. The Australian Dollar has had a sterling run of late, jumping above 0.7600, to begin the week. The big local news, in the coming week, is the release of the RBA Minutes on Tuesday. This is a snapshot of the Central Banks view of the state of the local economy and thus should impact the currency. This comes after last week's strong employment data and reasonably strong commodity prices. European manufacturing PMI will drive the EURO.
Calendar
19/6 NZ Consumer Confidence, Japan Trade, NZ Dairy Auction, Australia New Vehicle Sales, EU Construction
20/6 Australia Consumer Confidence, NZ Consumer Confidence, Australia House Price Index, RBA Minutes, EU Current Account, US Current Account
21/6 US Weekly Mortgage Applications, US Existing Home Sales
22/6 RBNZ Rate Decision, NZ Credit Card Spending, US Weekly Jobless Claims, EU Consumer Confidence, US Leading Indicators, Kansas City Fed Manufacturing Activity Index
23/6 France GDP, German/France/EU Manufacturing/Services/Composite PMI, US Manufacturing/Services/Composite PMI, US New Home Sales