What to Expect This Week

This week, economic data in the United States is relatively light. The only major release is the trade balance which probably narrowed in May due to a huge drop in imports that mirrors one of the largest declines in customs duties on record.

In the Euro Area, we expect the confirmation of a record fall in Q1 GDP growth. In the United Kingdom, the key event is the Bank of England Monetary Policy Meeting. Quantitative easing policy will be extended but we don’t expect any changes in the benchmark interest rate. Also, the trade deficit may improve further helped by lower demand for foreign products. In Canada, we expect unemployment rate to rise further in June. In addition, trade balance for May is expected to return to positive territory. In Switzerland, unemployment rate is also likely to rise again in June. Finally, in Australia, even though unemployment rate may spike higher, the Reserve Bank of Australia should keep a neutral policy stance and keep its key interest rate unchanged.

Anna Fedec, contact@tradingeconomics.com
7/6/2009 9:03:56 AM