In the week ahead, investors worldwide will continue to try and second guess when the Federal Reserve will start to tighten by tapering its asset purchases. With contrasting messages coming from employment and price data, the debate is likely to continue for some time, certainly until the next FOMC meeting in June, leading to choppy markets. The data week starts tomorrow with Consumer confidence and New Homes Sales. Thursday is the busiest day on the data docket with further reports on the state of the housing market in the shape of Pending Home Sales alongside the weekly Jobless Claims and Durable Goods Orders. Also released on Thursday are revisions to the first-quarter GDP figures, and Treasury Secretary Janet Yellen is due to speak. Ahead of the long US weekend celebrating Memorial Day, one of the Fed’s favoured data sets, Personal Consumption, is released on Friday.
The Swedish krona saw some fast swings and movements last week, but they were all within a narrow range. This week is quite macro data-intense with the PPI figure out tomorrow, followed by the Unemployment rate on Wednesday. More Swedes are expected to have found jobs, but the level is still likely to show that 9% of the population is unemployed. On Thursday, we get the Consumer Confidence figure and the Economic Tendency Survey. Finally, Friday finishes the week off with the Trade Balance being reported as well as the GDP figure and then the latest Retail Sales.
Norway’s currency, the Norwegian krone, has weakened throughout May and lost a lot of ground against the euro last week. Weaker GDP figures than expected and lower inflation figures than anticipated have contributed to its current lacklustre performance. Nevertheless, it is now trading well above the important 10.0000 mark against the euro. This week we will watch the Unemployment Rate, released on Friday, which is expected to come in at 3.5%, an improvement of 0.5% from the previous month.
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