Top 5 Economic Events To Watch | November 14 – 18

Dear traders, it’s a busy week for economic data in the 🇬🇧 UK with the unemployment rate, the inflation rate, a fiscal statement, and retail sales all due 📊

In the US the key release will be PPI on Tuesday. There is also retail sales data coming out on Wednesday and Housing data due on 📅 Thursday and Friday.

🔻 Let’s take a look at the main expected events, so we don’t miss anything important 🔻

US PPI – Tuesday, November 15th

📅 The Producer Price Index (PPI) will be released on Tuesday, November 15 at 15:30 (GMT +2).

The Producer Price Index (PPI) program measures the average change over time in the selling prices received by domestic producers for their output.

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

Why is this event important?

The PPI is an important governmental economic report that suggests the future direction of inflation or deflation. Unlike the CPI, which is a lagging indicator, the PPI is a leading indicator. In other words, looking at the prices businesses charge for their products and services can foreshadow changes in the closely watched CPI. Investors use these hints about inflation to guide investment decisions based on the likely effects that future inflation or deflation will have on stocks, bonds and other securities and assets.

Empire State Manufacturing Index – Tuesday, November 15th

📅 The Empire State Manufacturing Index will be released on Tuesday, November 15 at 15:30 (GMT +2).

The Empire State Manufacturing Index rates the relative level of general business conditions in New York state. The reading is compiled from a survey of about 200 manufacturers in New York state.

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

Why is this event important?

The Empire Manufacturing Survey gives a detailed look at New York state’s manufacturing sector, how busy it is and where things are headed. Since manufacturing is a major sector of the economy, this report has a big influence on the markets. The Federal Reserve closely watches this report because when inflation signals are flashing, policymakers can reset the direction of interest rates.

UK CPI – Wednesday, November 16th

📅 On Wednesday, November 16, the UK CPI will be released at 9:00 (GMT+2).

The Consumer Price Index (CPI) measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.

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

Why is this event important?

The CPI is one of the most commonly used tools to measure inflation and deflation. Inflation is an important indicator of an economy’s health. Governments and central banks use the CPI and other indices to make economic decisions.

Monetary Policy Report Hearing – Wednesday, November 16th

📅 On Wednesday, November 16, the Monetary Policy Report Hearing will be held at 15:30 (GMT+2).

The Bank of England publishes a Monetary Policy Report four times a year. After publication, the Treasury Committee holds sessions with the Governor of the Bank of England and members of the Monetary Policy Committee to look both at the reports themselves, and the wider picture for monetary policy.

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

Why is this event important?

At these hearings of the main British regulator, theses on changing monetary policy may be announced. As you know, a change in the key rate in one direction or another can cause increased volatility of the British pound and stocks.

US Retail Sales and Core Retail Sales – Wednesday, November, 16th

📅 On Wednesday, November 16, the US Retail Sales and Core Retail Sales will be released at 15:30 (GMT +2).

The term retail sales refer to an economic metric that tracks consumer demand for finished goods. This figure is a very important data set as it is a key monthly market-moving event.

Assets Affected: $USD and $US Stocks 🇺🇸

Why is this event important?

Retail sales are reported each month by the U.S. Census Bureau and indicate the direction of the economy. It acts as a key economic barometer and whether inflationary pressures exist. Retail sales are measured by durable and non-durable goods purchased over a defined period of time.

❗ A higher-than-expected reading should be taken as positive/bullish for the USD, while a lower-than-expected reading should be taken as negative/bearish for the USD.

That’s it for this week! 👋