There are certain weeks in the foreign exchange market that are more exciting than others and the first week of each month is always a busy one. In fact the mini breakout in USD/JPY on Friday indicated some larger moves expected in the major currency pairs in the coming week. There are no shortages of Tier 1 economic reports on the calendar but we also have central bank rate decisions and a major change in fiscal policy in Japan. There will be a lot of news for the market to absorb so directionality may be difficult to handicap but one thing is for sure that these events will increase the volatility in currencies.

Some major events in coming week:

1. Japan Set to Raise the Sales Tax for First Time in 17 Years
2. ECB and RBA Central Bank Decisions
3. US, German and Canadian Employment Reports
4. Chinese PMIs
5. ISM and PMI Reports from US, EZ, Australia and Canada
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