What to expect this week?

This week, the market will be focus on the outcome of several central banks meetings. The United States Federal Reserve, European Central Bank, Bank of England and Reserve Bank of Australia are expected to keep rates unchanged due to signs of further economic slowdown.

Moreover, we expect personal income to fall slightly in the United States but consumption to increase due to the Bush administration fiscal stimulus effect.  In Canada, labor market conditions should improve slightly with employment rising and unemployment rate staying on hold. On the other hand, employment indicators for New Zealand and Australia could show some deterioration, particularly in residential construction and retail. Finally, we are expecting service PMI reports from both the United Kingdom and the Euro Zone to disappoint and show a further decline in business sentiment.

Trading Economics
8/2/2008 4:26:08 PM