5 Events Could Cause Volatility Spikes Tomorrow

Who needs the NFP Friday when we have FIVE major economic reports coming up tomorrow! Here’s what you need to know about tomorrow’s major events.

BOE monetary policy statement (12:00 pm GMT)

With the manufacturing, construction, and services PMIs printing mixed reports pound traders will likely look to the Bank of England (BOE) decision for direction. Unfortunately, the BOE isn’t expected to make any changes to its interest rate and monthly asset purchases. If this is the case then we’ll have to wait for the Monetary Policy Committee (MPC) meeting minutes to see what the central bank thinks of the economy.

ECB monetary policy statement (12:45 pm GMT)

In his last European Central Bank (ECB) press conference Draghi hinted that deterioration in inflation outlook or “unwarranted” tightening of short-term money markets could trigger action from the central bank. But with euro zone inflation, GDP, and PMI surprising to the upside this week, the pressure to act has lessened. Still, some analysts believe that Draghi will at least hint at future actions such as a rate cut, more LTRO, QE, or even ending its Securities Market Program (SMP).

IVEY PMI (3:00 pm GMT)

Canada has been under the spotlight for its recent weaknesses and this report could further accelerate the Loonie’s losses. The IVEY PMI, a survey of around 175 purchasing managers, is expected to show a 53.1 reading from its 56.8 figure for the month of January.

Central banker speeches (London to US session)

The BOE and the ECB aren’t the only central bankers to give their two cents. At 1:30 am GMT John Williams from the Fed will give a speech, followed by Dudley at 1:15 pm GMT and Plosser at 6:00 pm GMT. These guys generally support tapering but keep an eye out in case they hint otherwise!

At 11:30 pm GMT we’ll also hear from the RBA’s own Glenn Stevens. Since the RBA just hinted that the Aussie is still “high by historical standards,” I wouldn’t be surprised if we see more jawboning from the central banker.

US employment-related reports (US session)

Whoever said that spoilers aren’t good? Tomorrow Uncle Sam will print its Challenger job cuts data at 6:30 am GMT, followed by the initial jobless claims at 1:30 pm GMT. Although these reports aren’t as correlated to Friday’s NFP report as today’s ADP and ISM non-manufacturing PMI numbers, these reports could still support biases ahead of the big NFP release.