NFP report release is already behind us and markets' attention shifts to FOMC minutes release next week. Bullard hinted that taper talks have already begun and minutes may confirm it. Apart from that, investors' attention will also be drawn to data from Germany and Canada, as well as a new set of economic forecasts from European Commission. Be sure to watch GOLD, DE30 and USDCAD next week!
Gold retested the $1,760 support area at the beginning of this week before launching an upward move in the second half of the week. Nevertheless, the precious metal continues to trade over 5% below year-to-date highs and struggles to produce a bigger move in either direction. FOMC minutes released on Wednesday, 7:00 pm BST is a key macro report for gold traders next week. Some Fed members hinted that taper discussions have already begun and minutes release may show confirmation.
Unlike their US peers, stock market indices from Europe struggle to reach fresh all-time highs. DE30 has been stuck in a 15,500-15,700 pts trading range for over a week now and looks to be waiting for a catalyst for the next big move. Such a catalyst may surface from German data scheduled for the next week - factory orders (Tuesday, 7:00 am BST), ZEW (Tuesday, 10:00 am BST) and industrial production (Wednesday, 7:00 am BST). On top of that, European Commission will publish a new set of economic forecasts on Wednesday.
FOMC minutes on Wednesday may have an impact on the US dollar but USDCAD currency pair will also get a chance to move on Friday during release of Canadian labour market data for June (1:30 pm BST). Report is expected to show a third month of declining employment in a row. CAD has been benefiting from higher oil prices but recent USD strengthening has capped gains. Another weak jobs report from Canada may exert more pressure on CAD.
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