[ForexNews]

RBA Board Meeting/Bank of Canada Rate Decision
Jun 2/Jun 4

Market expects the RBA to deliver another steady rate decision following its June board meeting. While an easing bias will remain evident, some also expect the short accompanying statement to confirm a wait and watch stance as the RBA
continues to assess the impact of the substantial monetary and fiscal stimulus to date. The BoC will likely reiterate their conditional promise to keep the overnight rate at its current level of 0.25% until the end of the second quarter of 2010. The
statement will also likely reference the recent improvement in broader financial conditions, which may provide the Bank further breathing room on the topic of quantitative and credit easing. The market will focus in on any comments on the sharp ascent of the Canadian dollar in recent weeks as inflationary pressures continue to moderate.

UK MPC/ECB Rate Decisions
Jun 4

The UK MPC will leave the policy rate unchanged at 0.5% with the market focus on any change in QE tactics. Having raised the QE total to £125bn in May market expects a unanimous vote to continue the pace of purchase at the current rate of
£25bn p.m. The ECB are also expected to keep the policy rate unchanged at 1%. Market focus will also be on unconventional policy measures with the ECB expected to announce the arrangements for buying covered bonds. The €60bn total is expected to be confirmed with the ECB rumoured to be prepared to buy bonds in both the primary and secondary markets. The ECB will also release its staff projections. CPI and GDP growth forecasts may both be edged lower certainly
for 2009. It remains to be seen whether the ECB responds to recent optimism and at least keeps 2010 forecasts unchanged.

US Non-farm Payrolls/Canadian Employment Reports
June 5

Although US jobless claims remain extremely elevated at 628.5k (4-week m.a.), this does represent an improvement from the 648.0k average seen last month. This slight decline underpins the forecast for another moderation in payroll losses
from 539k in April to 500k in May. The unemployment rate is expected to continue its ascent, rising to 9.1% from 8.9% in April. Canadian employment is expected to show a decline of 33k jobs, almost a complete unwinding of the gains recorded in
April with the shutdown of Chrysler in May weighing. Construction employment is expected to match April’s decline, with residential building activity showing signs of continuing retrenchment. The 33k decline is expected to send the unemployment rate up to 8.3% from 8.0% in April.