More Wealth Guide

The labor market in Canada is expected to improve for the sixth consecutive month in June as businesses increase their rate of production, and the rise in payrolls could drive the exchange rate higher as the data reinforces an enhanced outlook for future growth.

As the economic recovery in Canada gathers pace, the central bank is widely expected to normalize policy in the second-half of the 2010 as Governor Mark Carney aims to balance the risks for growth and inflation.

As the ballooning budget deficit in the U.K. drags on the long-term outlook for the economy, a record rise in public sector borrowing could spark increased volatility in the exchange rate as investors weigh the prospects for future growth.

As economic activity in New Zealand is expected to expand for the second consecutive quarter, with market participants speculating the central bank to normalize policy further over the coming months, the data could spark a bullish reaction in the NZD/USD as the outlook for growth and inflation improves.