Economics Week Ahead

Wells Fargo’s weekly outlook highlights Friday’s U.S. employment report (May nonfarm payrolls +105K; unemployment 4.4%) and ISM surveys as the week’s market drivers. The note sees the U.S. labor market as stabilizing rather than improving, keeping rate expectations relatively steady. Eurozone May CPI is forecast to rise to 3.3% y/y (core 2.5%), reinforcing expectations for ECB tightening at or after June, while Australia’s Q1 GDP is seen moderating (2.6% y/y) with RBA scope for another hike later in the year. Canada’s employment is expected to rise ~15K. For EM, the RBI is expected to hold at 5.25% but risks point toward two hikes this year. Overall, the piece signals neutral-to-cautious market implications: inflation prints and employment data will influence central bank paths and FX/interest rate positioning.