Stocks finished this past week deeply in the red, as banking stocks tumbled under the weight of news of SVB collapse, pushing the broad indexes down ($DOW30, $NAS100, $SPX500, etc.).
This week, we’ll receive a slew of important economic reports. It’s worth watching for the following economic news items, as all of them can prove to be major market movers.
Get ready for an exciting week ahead! 👇
United Kingdom Claimant Count Change – Tuesday, March 14th
📅 The United Kingdom Claimant Count Change will be released on Tuesday, March 14 at 09:00 (GMT +2).
📌 The United Kingdom Claimant Count Change is a key economic indicator that measures the change in the number of individuals claiming unemployment benefits in the UK. This statistic provides valuable insights into the state of the labor market and the economy's overall health.
📊 As we know, an increase in the claimant count indicates weakness in the labor market and can negatively affect the UK GDP quotes. However, analysts are predicting a decline in this indicator in the upcoming release, which means the number of applicants could drop precipitously. This could positively impact the stock market and the national currency.
Assets potentially to be affected: $GBP and $UK Stocks 🇬🇧
United States Consumer Price Index (CPI) m/m – Tuesday, March 14th
📅 The US Consumer Price Index (CPI) m/m will be released on Tuesday, March 14 at 14:30 (GMT +2).
📌 The US CPI & Core CPI measures the price change of a fixed basket of goods and services from the consumer's perspective from the reporting month to the previous period. The basket contains goods and services of similar quality and quantity, so the index is a pure price change.
📊 The Consumer Price Index indicates the change in consumer inflation. The Fed also uses the CPI to monitor its monetary policy. In addition, analysts and economists use the CPI to analyze the causes of inflation. A slight increase in the CPI can be negative for the stock market and positive for the national currency, as it can increase demand for the currency.
Assets potentially to be affected: $USD and $US Stocks 🇺🇸
United States Retail Sales m/m – Wednesday, March 15th
📅 On Wednesday, March 15, the United States Retail Sales m/m will be released at 14:30 (GMT+2).
📌 The United States Retail Sales m/m measures the month-to-month change in the total sales value at the retail level in the US. It's a key indicator of consumer spending and offers valuable insight into the economy's overall health.
📊 This data can potentially create significant volatility in the US Dollar and US Stocks. According to expert predictions, this indicator is expected to show a decline, signaling a slowdown in the economy and a decrease in consumer spending. Keep a close eye on this data and be ready to react to any market movements.
Assets potentially to be affected: $USD and $US Stocks 🇺🇸
European Central Bank (ECB) Interest Rate Decision – Thursday, March 16th
📅 On Thursday, March 16, the European Central Bank (ECB) Interest Rate Decision will be released at 15:15 (GMT+2).
📌 ECB Interest Rate Decision is announced after the European Central Bank meetings, on which the euro zone's monetary policy is discussed. The interest rate decisions depend on the inflationary outlook and economic growth.
📊 The ECB may raise its deposit rate by 50 basis points this week, even though the Eurozone economy is almost certainly in recession as it struggles with inflation five times its target. Traders watch interest rate changes closely, as short-term interest rates are the primary factor in currency valuation. A higher-than-expected rate is positive/bullish for the $EUR, while a lower-than-expected rate is bearish for the $EUR.
Assets potentially to be affected: $EUR and $EU Stocks 🇪🇺
European Union Consumer Price Index (CPI) m/m – Friday, March 17th
📅 The EU Consumer Price Index (CPI) m/m will be released on Friday, March 17, at 12:00 (GMT +2).
📌 The European Union Consumer Price Index is an important leading indicator for financial markets, as it can significantly impact currency values ($EUR), European bond yields, and equity prices.
📊 A higher-than-expected reading on the CPI can indicate rising inflation, leading to higher interest rates and potentially dampening EU economic growth. Conversely, a lower-than-expected reading may suggest that inflation is not a concern, leading to lower interest rates and increased economic growth.
Join us in tracking the release of the EU CPI report this week and gain a deeper understanding of the current state of the EU consumer activity!
Assets potentially to be affected: $EUR and $EU Stocks 🇪🇺
That's it for this week! 👋
