Top 10 Economic Events To Watch | November 28 – December 2

Dear traders, the week ahead is full of important economic events out of the United Kingdom, Eurozone, and USA that may move both the currency and the stock markets 📊

After news that global inflation has slowed a bit and oil continues to plummet, the big question is – what lies ahead?

Let’s take a look at the upcoming economic events that may give us the answer to our question 🔻

Bank of England Governor Speech – Tuesday, November 29th

📅 The Bank of England Governor Speech will be held on Tuesday, November 29 at 17:00 (GMT +2).

Andrew Bailey will speak at a press conference following the UK Central Bank’s latest monetary policy decision.

Asset(s) Affected: $GBP and $FTSE100 🇬🇧

Why is this event important?

During the press conference, the governor of the Bank of England may announce changes in the monetary policy, or confirm a further increase in the interest rate. Any statement may cause increased volatility in the British Pound and stock market.

CB Consumer Confidence – Tuesday, November 29th

📅 The CB Consumer Confidence will be released on Tuesday, November 29 at 17:00 (GMT +2).

Conference Board (CB) Consumer Confidence measures the level of consumer confidence in economic activity. It is a leading indicator as it can predict consumer spending, which plays a major role in overall economic activity.

Asset(s) Affected: $USD and $US Stocks 🇺🇸

Why is this event important?

A high level of consumer confidence stimulates economic expansion, while a low level can lead to an economic downturn. After the publication of this index, higher volatility is expected on the stock index. A higher index can serve as a positive signal for investors, and vice versa.

Flash CPI and Core CPI estimates Eurozone – Wednesday, November 30th

📅 On Wednesday, November 30, the Flash CPI and Core CPI estimates in Eurozone will be released at 12:00 (GMT+2).

The Core Consumer Price Index (CPI) measures the change in the price of goods and services purchased by consumers, excluding food, energy, alcohol, and tobacco.

Asset(s) Affected: $EURO and EU Indices 🇪🇺

Why is this event important?

The data has a relatively mild impact because overall CPI is the European Central Bank’s mandated inflation target. A higher-than-expected reading may be taken as positive/bullish for the EUR, while a lower-than-expected reading may be taken as negative/bearish for the EUR.

ADP Non-Farm Employment Change – Wednesday, November 30th

📅 On Wednesday, November 30, the ADP Non-Farm Employment Change will be released at 15:15 (GMT+2).

The ADP National Employment Report is a measure of the monthly change in non-farm, private employment, based on the payroll data of approximately 400,000 U.S. business clients. The release, two days ahead of government data, is a good predictor of the government’s non-farm payroll report.

Asset(s) Affected: $USD and $US Stocks 🇺🇸

Why is this event important?

The indicator characterizes the US labor market state. The growth of employment is a leading indicator of consumer spending growth. The Fed takes into account the state of the labor market in its interest rate decision. Therefore, indicator growth can potentially be seen as positive for the US Dollar.

Prelim GDP – Wednesday, November, 30th

📅 On Wednesday, November 30, the Prelim GDP will be released at 15:30 (GMT +2).

US Gross Domestic Product (GDP) measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy.

Assets Affected: $USD and $US Stocks 🇺🇸

Why is this event important?

It is the broadest measure of economic activity and the primary indicator of the economy’s health.

Usual Effect: Actual > Forecast = Good for currency

It is worth noting that the growth of this indicator might positively affect some safe-haven assets, including gold.

JOLTS Job Openings – Wednesday, November, 30th

📅 On Wednesday, November 30, the JOLTS Job Openings will be released at 17:00 (GMT +2).

The Job Openings and Labor Turnover Survey (JOLTS) tells us how many job openings there are each month, how many workers were hired, how many quit their job, how many were laid off, and how many experienced other separations.

Assets Affected: $USD and $US Stocks 🇺🇸

Why is this event important?

The vacancies’ data gauges labor demand, while the number of quits, or voluntary separations, and their rate help to measure labor force turnover. This is used for investors and economists to assess manufacturing activity as well as the state of affairs in other areas.

Typically, any increase in job openings is good for the United States economy. Therefore, we can expect U.S. stock indices to rise, which is also good for the U.S. dollar.

However, if the job openings are lower, this would be bad for the United States economy, stock markets and the US Dollar.

Speech by Fed’s Chair Jerome Powell – Wednesday, November, 30th

📅 On Wednesday, November 30, the Fed’s Chair Jerome Powell will speak from 20:30 to 21:00 (GMT +2).

As head of the Fed, which controls short-term interest rates, he has more influence over the US Dollar’s value than any other person.

Assets Affected: $USD and $US Stocks 🇺🇸

Why is this event important?

Federal Reserve Chairman Jerome Powell will speak about the economy and the labor market on Wednesday, Nov. 30, only two days before US Central Bank officials stop talking publicly to prepare for their mid-month policy meeting. This could cause increased volatility in the US Dollar.

Core PCE Price Index – Thursday, December, 1st

📅 On Thursday, December 1, the Core PCE Price Index will be released at 15:30 (GMT +2).

The Core PCE Price Index is defined as personal consumption expenditure prices excluding food and energy prices. The index measures the prices paid by consumers for goods and services without the volatility caused by movements in food and energy prices to reveal underlying inflation trends.

Assets Affected: $USD and $US Stocks 🇺🇸

Why is this event important?

PCE reveals how much households spend on immediate consumption versus saving for the future. Higher consumption levels translate into greater GDP growth in the short term. On the other hand, a higher savings rate is good for long-term economic health.

A rising Core PCE Price Index is considered as a measure of economic growth: while personal spending stimulates inflationary pressures, it could lead to rising interest rates. A high reading is positive (or Bullish) for the $USD.

ISM Manufacturing PMI – Thursday, December, 1st

📅 On Thursday, December 1, the ISM Manufacturing PMI will be released at 17:00 (GMT +2).

The Purchasing Managers Index (PMI) is a diffusion index summarizing economic activity in the manufacturing sector in the US. Participants are asked to gauge activity in a number of categories like new orders, inventories, and production. These sub-indices are then combined to create the PMI.

Assets Affected: $USD and $US Stocks 🇺🇸

Why is this event important?

Investors can better understand the national economic patterns and conditions by tracking the Institute of Supply Management (ISM) Manufacturing Index. For example, in response to higher corporate earnings, investors expect a bullish stock market as the index goes up.

If the released PMI number is better than the previous number and higher than the forecasted number, the US Dollar tends to rally.

If the PMI is lower than the previous period, this may be considered as a negative signal for the USD and the stock market.

NFP and Unemployment Rate – Friday, December, 2nd

📅 On Friday, December, 2 the NFP and Unemployment Rate will be released at 15:30 (GMT +2).

The non-farm payroll (NFP) report is a key economic indicator for the United States and represents the total number of paid workers in the US excluding those employed by farms, the federal government, private households, and nonprofit organizations.

Assets Affected: $USD and $US Stocks 🇺🇸

Why is this event important?

A higher payroll figure is generally good for the US economy, citing more job additions and more robust economic growth. Any release above that figure or the estimated consensus might help fuel USD gains.

A lower employment picture may be considered as negative for the world’s largest economy and the greenback.

That’s it for this week! 👋