This week, the markets will focus on FOMC members' speeches, particularly Federal Reserve Chair Jerome Powell's testimony before Congress on Thursday. We are also anticipating important releases this week, including June's S&P Global Manufacturing and Services PMIs, BoE rate decision, and May's Housing Starts & Building Permits.
Check out our weekly recap for all the top economic events!
May’s Housing Starts and Building Permits
📅 Tuesday, June 20th at 15:30 (GMT+3).
📌 Housing starts data provides valuable insights into the health of the housing market and the broader economy, as housing starts typically correlate with economic growth, employment, and consumer spending.
📊 Interest rates and inflationary pressures are among the factors that influence both data sets; economists view them as important data points in measuring economic conditions, as well as individuals’ and builders’ outlooks for the housing market and the overall economy. Unexpected strength in the housing data may suggest more inflationary pressures down the road.
Assets potentially to be affected: $USD and $US Stocks 🇺🇸
Fed Chair Powell's Testimony
📅 Wednesday, June 21st at 17:00 (GMT+3).
📌 Federal Reserve Chair Jerome Powell will testify before Congress, as part of his semiannual testimony on the state of monetary policy. The testimony will come a week after the FOMC’s latest meeting, where Fed policymakers decided to hold interest rates steady after hiking them ten consecutive times to cool inflation.
📊 While inflation has slowed markedly from last summer’s highs, the Fed’s latest dot plot suggests officials could hike the benchmark fed funds rate twice more this year — to 5.6% — if inflation continues to run hot.
Assets potentially to be affected: $USD and $US Stocks 🇺🇸
BoE Interest Rate Decision
📅 Thursday, June 22nd at 14:00 (GMT+3).
📌 BoE Interest Rate Decision refers to the decision made by the Bank of England regarding changes to the central bank's benchmark interest rate.
📊 People will be hoping for some good inflation news on Tuesday, but if recent months are anything to go by, we should probably expect the worst and hope for the best. Another bad report could pile pressure on the BoE a day later to hike by 50 basis points. It’s only 12% priced now, but that could change if the CPI data is ugly once again. And with 125 basis points of hikes priced in between now and February, there’s seemingly a lot of work still to do.
Assets potentially to be affected: $GBP and $UK Stocks 🇬🇧
EU S&P Global Manufacturing and Services PMIs
📅 Friday, June 23rd at 11:00 (GMT+3).
📌 The EU S&P Global Manufacturing & Services PMI is a business activity index that assesses European Union countries' manufacturing and services sectors. It is based on a survey of purchasing managers and reflects the level of activity in these sectors of the economy.
📊 If the EU S&P Global Manufacturing & Services PMI comes in higher than expected, it could potentially strengthen the euro and boost investor confidence in the European markets. However, if the data disappoints, it could lead to a sell-off in European stocks and weaken the euro. Analysts are expecting growth in the PMI, which could bode well for the European economy.
Assets potentially to be affected: $EUR and $UE Stocks 🇪🇺
US S&P Global Manufacturing and Services PMIs
📅 Friday, June 23rd at 15:30 (GMT+3).
📌 These purchasing managers’ indexes capture developments in the two dominant sectors of the US economy. The PMIs serve as accurate and timely indicators of business conditions that help analysts and economists to correctly anticipate changing economic trends in official data series such as gross domestic product (GDP), industrial production, employment, and inflation.
📊 Higher-than-expected readings would support the Federal Reserve’s case for further rate increases.
Assets potentially to be affected: $USD and $US Stocks 🇺🇸
That's it for this week! 👋
