A series of crucial economic reports is poised to take center stage this week, carrying significant implications for shaping the Federal Reserve's forthcoming monetary deliberations during its upcoming policy rate meeting in September. From the anticipated speech by the Federal Reserve Chair at the Jackson Hole Symposium to the release of August's S&P Global Manufacturing and Services PMIs, these events collectively hold the potential to influence the central bank's decision-making process.
For a comprehensive breakdown of these events and more, read our weekly economic recap.
🇪🇺 S&P Global Composite PMI
Kickstarting the week's economic insights, the S&P Global Composite Purchasing Managers' Index (PMI) takes the stage on Wednesday at 11:00 GMT+3. This pivotal indicator, encompassing both manufacturing and services sectors, is projected to experience a marginal decline, potentially dipping slightly below 48 points, in line with analysts' prognostications. Such a dip could potentially cast its influence over both manufacturing and services realms, prompting a broader impact.
Keep a watchful eye on the Euro, as these forecasts, if realized, might exert downward pressure on the currency.
🇺🇸 August’s S&P Global Manufacturing and Services PMIs
Get ready for a pivotal market moment as August's S&P Global Manufacturing and Services Purchasing Managers' Index (PMIs) are set to be unveiled this Wednesday at 16:45 GMT+3.
These highly anticipated reports offer a crucial glimpse into the pulse of the essential US economic sectors, serving as a vital barometer for gauging the broader economic landscape. Widely utilized by policymakers and analysts alike, these forward-looking indicators provide valuable insights into prevailing economic trends. While it's possible that the indicators could maintain their previous month's levels, market experts speculate that the production index may witness a slight uptick, potentially signaling increased production volume.
Will this data lend support to the buoyancy of the US stock market?
🇺🇸 July’s Durable Goods Orders
Mark your calendars for Thursday, August 24, at 15:30 GMT+3, as the spotlight shines on a pivotal economic report revealing the three-year durable goods orders. These orders, often associated with higher price points, serve as a barometer of businesses' and consumers' confidence in the near-term economic outlook. This crucial indicator provides valuable foresight into manufacturing activity and offers a window into the broader economic landscape. While the previous month saw a commendable 0.6% uptick, expectations for this release point towards a neutral stance with no anticipated increase or decrease. The implications of such a scenario might suggest a potential dip in consumer engagement.
🇺🇸 August’s Michigan Consumer Sentiment Index
Again, circle your calendars for Friday, August 25th, at 17:00 GMT+3, as all eyes turn to the unveiling of the August Michigan Consumer Sentiment Index. This vital report serves as a reflection of consumers' economic confidence and their outlook on long-term economic conditions. With consumer confidence intricately linked to spending patterns, a boost in optimism often heralds increased expenditures, a pivotal component of overall Gross Domestic Product (GDP) growth. As the clock ticks closer, market watchers are attuned to the possibility that the index might retain its current standing at 71.2. This data release promises insights into consumer behavior and its potential reverberations across the economic landscape.
🇺🇸 Fed Chair Powell’s Speech
Wrapping up the week with a significant economic highlight, don't miss Fed Chair Powell's Speech on Friday, August 25th, at 17:05 GMT+3. The words of the Fed Chair hold the power to sway the trajectory of the USD, contingent on the rhetoric employed. Should the speech convey a leaning towards a potential rate hike in the upcoming FOMC meeting, it tends to bolster the USD, and conversely, a contrary effect follows suit.
That's it for this week! 👋
