Fundamentals to watch out for this week

Compared to last week, when both Fed and BoJ were to announce monetary policies, this week is relatively less risk heavy but only marginally. Focus is on BoE rate decision.

What to watch for over the coming days:

• PMI week:

Investors will focus on PMI reading coming out of Europe and especially the UK to gauge the level of stress in the economies after the UK referendum. Manufacturing PMIs are scheduled for Monday and Services PMIs on Wednesday.

• US economic data:

After last week’s disappointing GDP, the market will focus on the next set of economic dockets to gauge whether this flash GDP reading could improve in the next estimates. Lots of data to chew on this week. ISM manufacturing PMI on Monday. Personal consumption and spending on Tuesday, Services PMI and ADP employment report on Wednesday, and finally the NFP report on Friday.

• RBA interest rate decision:

Reserve Bank of Australia is set to announce policy decision on Tuesday. Recent weak inflation numbers are adding to the pressure of RBA to reduce rates.

• BoE monetary policy:

Bank of England (BoE) is widely expected to take some actions on Thursday. Mr. Carney, the governor had already hinted at the strong possibility. Most likely actions would be a combination of both a rate cut and asset purchases.

In addition to the above, unscheduled Brexit commentaries would keep weighing on the market.