This week, the greatest attention of the market will attract the statistics from the US due to the new, and probably positive, release of the Nonfarm Payrolls data, as well as due to speeches of US Fed members.
Strong statistics and optimistic comments from the US regulator will strengthen expectations of rate increases, and vice versa.
In addition, investors should pay attention to today's data on US non-manufacturing sector.
During the week, will be a lot of speeches from Fed members and traders will look for hints of the possible rate increase. Today, John Williams (San Francisco) will give comments, tomorrow - Loretta Mester (Cleveland) and Dennis Lockhart (Atlanta). On Wednesday, the torch will take Neel Kashkari (Minneapolis). On Thursday, Rob Kaplan (Dallas), James Bullard (St. Louis) and John Williams again will tell their opinions.
US nonfarm payrolls are expected to have risen 228.000 last month as most of the labor market indicators continued to indicate healthy conditions. Initial jobless claims in the April survey week reached 248.000 as compared with March period’s 259.000.
Meanwhile, the jobless rate might have dropped to 4.0% in April from March’s 5%. The labor force has increased sharply by 2.419 million since September 2015. This is expected to have slightly eased last month, resulting in a drop in unemployment rate.
Average hourly earnings might have also grown for the second consecutive month by 0.3% in April.