Anticipate significant publications ahead, such as the highly influential US Nonfarm Payrolls, which could potentially provide clarity on the Federal Reserve's interest rate hike decision in their upcoming meeting.
However, prior to the Friday NFP release, market participants should also pay attention to key inflation and labor market data from both the United States and Europe. These releases carry substantial weight in shaping market sentiment and investment strategies for the week.
Stay informed and stay tuned for the latest updates.👇
🇺🇸 United States Consumer Confidence Index
This measure captures individuals’ confidence level in economic activity, directly translating into consumer spending numbers.
📅 When?
Tuesday, May 30th at 17:00 (GMT+3).
📊 Why does it matter?
A higher-than-expected confidence reading would portend higher spending in the month ahead, adding to inflationary pressures and contradicting the Federal Reserve’s inflation-fighting measures applied up until now. Accordingly, any deviation from the current level of the index could trigger a change in monetary policy by the US Federal Reserve.
Assets potentially to be affected: $USD and $US Stocks
🇺🇸 United States JOLTS Job Openings
This report was published by the US Bureau of Labor Statistics (BLS). It provides information about job openings, hires, separations, and other labor market indicators in the United States. The report provides valuable insights into the health and functioning of the labor market.
📅 When?
Wednesday, May 31st at 17:00 (GMT+3).
📊 Why does it matter?
A JOLTS Job Openings indicator change can affect the US Dollar and stock quotes. If the number of job openings increases, it signals a growing and robust economy, boosting investor confidence and leading to a stronger USD and higher stock prices. On the other hand, if job openings decrease, it signals a weakening economy, which can cause investor concern and lead to a weaker US Dollar and lower stock prices.
Assets potentially to be affected: $USD and $US Stocks
🇺🇸 United States ISM Manufacturing PMI
The United States ISM Manufacturing PMI (Purchasing Managers' Index) is a closely-watched economic indicator that measures the manufacturing sector's overall health and activity level by surveying purchasing managers at various companies across the country.
📅 When?
Thursday, June 1st at 17:00 (GMT+3).
📊 Why does it matter?
It is crucial for traders to closely monitor the upcoming release of the United States ISM Manufacturing PMI, as the market is currently anticipating a slight dip in the index, which could have a negative impact on stocks but potentially bolster the US Dollar. However, questions remain: will this decline in the manufacturing sector lead to a drop in stock prices, or will other factors come into play?
Assets potentially to be affected: $USD and $US Stocks
🇪🇺 European Union Consumer Price Index (CPI) m/m
The European Union Consumer Price Index (CPI) m/m refers to the monthly change in the Consumer Price Index within the European Union. The CPI measures the average price changes for a basket of goods and services commonly purchased by households.
📅 When?
Thursday, June 1st at 12:00 (GMT+3).
📊 Why does it matter?
Traders monitor CPI data to anticipate shifts in central bank policies, such as interest rate changes, which can impact currency valuations, bond yields, and equity prices. CPI m/m figures influence currency movements, with higher-than-expected inflation potentially strengthening a currency and vice versa.
Assets potentially to be affected: $EUR and $EU Stocks
🇺🇸 United States Nonfarm Payrolls
United States Nonfarm Payrolls is a significant monthly economic report published by the Bureau of Labor Statistics, which reveals the net change in employment within the country, excluding workers in the agricultural sector, and is widely considered a critical barometer of the health and growth of the US economy.
📅 When?
Friday, June 2nd at 15:30 (GMT+3).
📊 Why does it matter?
The latest data on jobless claims, consumer spending, and PCE inflation have been stronger than expected; if the job reports confirm continued strength, the anticipation of a pause in the interest-rate hikes in June is all but voided.
Assets potentially to be affected: $USD and $US Stocks
That's it for this week! 👋
