Monday, June 2, 2008

Interest Rate and Foreign Exchange

It’s a full week of central bank news, central bank meetings and data.

Reserve Bank of Australia,
Reserve Bank New Zealand,
Bank of England
European Central Bank

Are all expected to keep rates on hold but more important is what they all say about the mix of upside risks to inflation and downside risks to growth. Out this list though watch the Australian announcement as inflation has become a problem and the number of Australian Banks suggesting that the RBA will hike rates to double digits by year end.

Although the key news for Foreign Exchange markets this week is the US employment report on Friday where consensus is for another negative print of -60K.

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