As the upcoming week unfolds, a financial tempest brews on the horizon, with a series of high-impact economic events poised to send ripples across global markets. From pivotal speeches by central bank leaders to revealing indicators of economic health, the stage is set for potential market volatility.
Will this week's data confirm current trends or herald a shift in the global economic landscape? Stay tuned as we delve into the heart of these impactful events.
🇪🇺 European Central Bank (ECB) President Lagarde Speech
This week holds significant implications for investors and traders, with a keen focus on the European Central Bank (ECB) President Christine Lagarde's speech. Scheduled for the evening of Monday, June 26 and continuing on Tuesday, June 27, these addresses are highly anticipated following the ECB's recent key interest rate hike.
Earlier this month, on June 15, the ECB made a significant move by increasing the key rate by 25 basis points, from 3.75% to 4%. The forthcoming speeches by President Lagarde could offer valuable insights into the ECB's outlook on future monetary policy decisions, including potential further rate hikes.
These events are particularly important for forex trading, especially those trading the EUR/USD currency pair. Moreover, investors in European equities will be eagerly watching, as Lagarde's remarks could potentially impact the broader European stock market.
🇺🇸 CB Consumer Confidence Index
In other key economic events, attention turns to the United States with the release of the US Consumer Confidence Index by the Conference Board (CB). The release is slated for Tuesday, June 27, at 17:00 GMT+3. This widely-watched index is a critical measure of the degree of optimism or pessimism that consumers express.
In the last release, the CB Consumer Confidence Index came out slightly below expectations, recording 102.3 against the anticipated 102.7. Despite this mild disappointment, the index remained in a positive zone. However, for the upcoming release, market analysts are tempering expectations even further.
The Index's findings can have a tangible impact on the US Dollar's performance and major indices such as the Nasdaq and Dow Jones. Lower consumer confidence can translate to decreased consumer spending, which constitutes a significant part of US economic activity. Therefore, a decline can lead to a weaker US Dollar and potential bearishness in major indices.
Traders and investors, especially those dealing in US Dollar currency pairs, US stocks, or US-related ETFs, should take note.
🇺🇸 Fed Chair Powell's Speech
Key economic events this week also include a speech by Federal Reserve Chair Jerome Powell, scheduled for 16:30 GMT+3 on Wednesday, June 28. Powell's remarks come from the Federal Reserve's decision to leave its key interest rate unchanged two weeks ago, marking this speech as potentially pivotal for market players.
In this case, Chair Powell's speech may shed light on the Fed's stance on the state of the US economy and its monetary policy roadmap, including any changes to the interest rates that may be on the horizon.
This event will be of significant interest to investors and traders worldwide.
🇺🇸 🇬🇧 US & UK Gross Domestic Product (GDP) q/q
Rounding out this week's slate of major economic events are the quarter-over-quarter releases of the Gross Domestic Product (GDP) for both the United States and the United Kingdom.
The US GDP data is set to be released on Thursday, June 29, at 15:30 GMT+3. Forecasts suggest that the US economy will maintain its momentum, with expectations for the figure to align with the previous quarter's growth of 1.3%.
Then, on Friday, June 30, at 9:00 GMT+3, the UK will publish its Q2 GDP data. Predictions here also suggest a steady-state situation, with analysts expecting the UK economy to replicate the prior quarter's growth of 0.1%. While this might appear marginal, it's worth noting that, given the UK experienced negative growth the year before last, maintaining positive growth is certainly a favorable outcome.
Any unexpected variances from the forecasted figures could lead to market volatility, particularly in the forex pairs associated with these countries, such as GBP/USD and EUR/GBP, as well as in the respective countries' equity and bond markets.
That's it for this week! 👋
