This week promises to be eventful for the financial markets, as several key economic indicators are scheduled for release. Investors and analysts will be watching closely as these indicators have the potential to impact market sentiment and drive asset price movements ($US Dollar, $EUR/USD, $Gold, $EU Stocks, etc.).
The US CCI, Core Durable Goods Orders, and GDP q/q for both the US and European Union are among the major releases. Additionally, the US PCE Price Index m/m will provide insights into inflationary pressures in the country.
👇 Let's take a look at this week's economic events in more detail!
United States Consumer Confidence Index – Tuesday, April 25th
📅 The United States Consumer Confidence Index will be released at 17:00 GMT+3 on Tuesday, April 25th.
📌 The Conference Board US Consumer Confidence Index is a monthly economic indicator that measures the degree of optimism consumers have about the economy's prospects.
📊 The Conference Board's CCI measures consumers' optimism in economic activity and is predicted to increase from March's 104.2 to 104.9. This index is considered a leading indicator as it can forecast consumer spending, which is a significant driver of economic activity. As a result, a higher-than-anticipated reading can positively impact the stock market, while a reading lower than expectations can have a negative effect on market sentiment.
Assets potentially to be affected: $USD and $US Stocks 🇺🇸
United States Core Durable Goods Orders m/m – Wednesday, April 26th
📅 The US Core Durable Goods Orders m/m will be released on Wednesday, April 26th, at 15:30 GMT+3.
📌 A durable goods report showing increased orders is a sign that the economy is trending upward. Durable goods orders tell investors what to expect from the manufacturing sector, a major economic component.
📊 According to analysis, a power-pack action is expected from the $US Dollar Index amid the release of the United States Durable Goods Orders data. A release of an upbeat demand for Durable Goods will strengthen core consumer inflation expectations and will also advocate for the announcement of consecutive 25 basis points (bps) rate hike from the Fed.
Assets potentially to be affected: $USD and $US Stocks 🇺🇸
United States Gross Domestic Product (GDP) q/q – Thursday, April 27th
📅 On Thursday, April 27th at 15:30 GMT+3, the US Gross Domestic Product (GDP) q/q will be released.
📌 United States Gross Domestic Product (GDP) q/q refers to a quarterly measurement of the total value of goods and services produced within the US economy, and is an important indicator of the country's overall economic health and growth rate.
📊 The Bureau of Economic Analysis (BEA) will release its final estimate of the real US GDP change for Q1, 2023, which can provide insights into the financial health of the US. In addition, the report on jobless claims for the previous week will be released, which can indicate the labor market's health. These reports can impact market sentiment and investors' outlook on the economy.
Assets potentially to be affected: $USD and $US Stocks 🇺🇸
European Union Gross Domestic Product (GDP) q/q – Friday, April 28th
📅 The release of the European Gross Domestic Product (GDP) q/q will take place on Friday, April 28th, at 12:00 GMT+3.
📌 European Gross Domestic Product (GDP) q/q refers to a quarterly measurement of the total value of goods and services produced within the UK economy, and is a key indicator of the country's economic performance and growth rate.
📊 If the upcoming release of the EU GDP shows an increase of one-hundredth of a percent, as predicted by analysts, it is possible that the euro currency ($EUR) and EU stocks may react positively to the news. However, if the previous quarter's GDP remained unchanged, the reaction may be more muted, suggesting a lack of growth momentum.
Assets potentially to be affected: $EUR and $EU Stocks 🇪🇺
United States PCE Price Index m/m – Friday, April 28th
📅 The US PCE Price Index release will occur on Friday, April 28th, at 15:30 GMT+3.
📌 US PCE Price Index m/m refers to a monthly economic indicator that measures changes in the prices of goods and services purchased by US consumers and is used to gauge inflationary pressures in the country. PCE stands for Personal Consumption Expenditures, a measure of consumer spending.
📊 The expectation is for an increase to 4.8% year-on-year, down from last data of 4.6%. A higher-than-expected reading could signal a potential pause in interest rate increases. At the same time, an increase in Core PCE may boost market optimism for a more accommodating monetary policy by the Fed.
Assets potentially to be affected: $USD and $US Stocks 🇺🇸
That's it for this week! 👋
