[ForexNews]

US unemployment rate to rise to 9.0%. Last ECB rate cut.
The US calendar features a host of Fed speeches, bank stress test results, the
non-manufacturing ISM and the April payroll report. A renewed bout of layoffs in
the auto sector suggests that it is too early to call the peak in the pace of job cuts.
Analysts see the unemployment rate rising to 9.0% in April. As for Fed speakers, we will be watching Bernanke’s testimony and Yellen’s speech.

In Europe, the ECB, the BoE and the Norges bank will decide on monetary policy
this week. Analysts expect the ECB to cut the refi rate by 0.25% and to announce a one-year refinancing operation, perhaps also introducing further measures to
promote bank lending. Analysts do not expect any major changes from the BoE. The Norges Bank will likely reduce the policy rate by 50bp.

Emerging market central banks set to cut rates further
In Latin America, we have rates decisions in Chile and Peru. The consensus is for a 25bp in Chile as the BCCH will likely end the easing cycle there, but expect a more aggressive move in Peru due to the collapse in activity, easing headline inflation and PEN strength.

In EMEA market sees 25bp rate cuts in both the Czech Rep and Romania respectively, and would not rule out a larger move in the latter despite the current
consensus looking for unchanged rates.