Decisions of RBA and BoE on interest rate next week

Index of the ISM production decision on the interest rate in Australia and the UK employment data from New Zealand, Canada and the US, Mark Carney will speak in London, the trade balance of the United States and Canada. These are the highlights next week.

US ISM Manufacturing PMI: Monday, 17:00. The manufacturing PMI continued contraction in December after disappointing data from 48.6 in the previous month. This is the lowest level since July 2009, with declines in all areas. The manufacturing PMI is expected to remain at 48.6 this time.

Decision of the RBA interest rate: Tuesday, 05:30. Reserve Bank of Australia left interest rates at a level of 2.0 percent at its meeting in December. Governor Glenn Stevens noted some improvement in economic conditions, but in the future may need additional monetary easing. Stevens said it was ready to cut rates if economic data deteriorate. Tuesday's meeting is expected to maintain the current interest rate as possible high volatility during the release notes.

Data on employment New Zealand: Tuesday, 23:44. The labor market of New Zealand unexpectedly shrank for the first time in three years in the third quarter, mainly due to the decline in part-time work. Employment fell by 0.4% after rising 0.3% in the previous quarter. Economists predict the labor market of New Zealand to expand by 0.8%, while unemployment is expected to rise to 6.1%. Upon confirmation of the forecasts it is likely to NZD lost ground against its major competitors.

Employment in the private sector in the US, according to ADP: Wednesday, 15:15. US private sector employment increased by 257,000 jobs in December, according to the report ADP. The data have signaled a strong economy followed by growth of 211,000 in the previous month. The strength of the labor market suggests that the economy remains stable and may prompt the Federal Reserve to raise interest rates again in March. US private sector employment is expected to rise by 191,000 in January.

BoE decision on interest rates: Thursday, 14:00. BoE keep interest rates in January amid volatility in global markets and continued decline in oil prices, which led to a slowdown in inflation further. Only one member of the MPC voted to increase to 0.75%. Members of the MPC believe that "the outlook remains unchanged from previous economic forecasts in November. But the minutes also noted the instability of financial markets and stock prices in particular. Furthermore, MPC stressed the decline in oil prices, which strongly will affect the growth of inflation by 40%.

Statement by Mark Carney: Thursday, 14:00. Governor of the BoE Mark Carney will speak about the report on inflation in London.

Applications for unemployment benefits in the US: Thursday, 15:30. The number of new claims for unemployment benefits in the US fell last week from a six-month high of 294 000 to 278 000, reaffirming the strength of the labor market in the US. The number of new claims are expected to be 286,000 this week.

Data on employment in Canada: Friday, 15:30. The Canadian labor market expanded unexpectedly in December, adding 22,800 jobs. The rate of employment growth in 2015 is slightly stronger than in 2014 and 2013

Canada's trade balance: Friday, 15:30. In November, Canada's trade deficit shrank to $ 2 billion. Canada's trade deficit is expected to reach close to zero.

US Trade Balance: Friday, 15:30. In November, the US trade deficit shrank to a nine-month low of $ 42.4 billion. The US trade deficit is expected to reach $ 42.8 billion in December.

E.Dimitrov JrTrader