Top 5 Economic Events To Watch | November 7 – 11

The key event this week will probably be the Consumer Price Index (CPI) on 📅 Thursday. Apart from that, it’s a quiet week for economic data – notable data includes the 🇺🇸 U.S. midterm elections on Tuesday and 🇬🇧 UK GDP data due Friday. 🤔 Nevertheless, upcoming economic events can leave a noticeable mark on financial markets.
🔻 Let’s take a look at the main expected events, so we don’t miss anything important 🔻

US Congressional Elections – Tuesday, November 8th 📅

The US Congressional Elections will be held on Tuesday, November 8 (all day). The midterm elections will put 35 Senate seats, 435 House seats, and 36 gubernatorial seats up to voters. Voters across the nation will decide which party controls the legislative branch of government and several gubernatorial seats. Regardless of who holds onto or gains power from the midterm election, the result will affect investors and the stock market for weeks to come.

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

Why is this event important? The outcome will have ramifications as to the next Congressional agenda, including fiscal policy, spending priorities, and potential changes in tax policy. Accordingly, unexpected election results could provoke increased volatility in the markets. Take this into account when building a trading strategy for the near future.

US CPI and Core CPI

Thursday, November 10th 📅 On Thursday, November 10, the US CPI and Core CPI will be released at 15:30 (GMT+2).

The Consumer Price Index, or CPI, is a metric that measures inflation by calculating the price change for a basket of goods. A basket of goods in this context refers to goods associated with the cost of living: transportation, food, medicine, energy, etc. So, CPI and Core CPI are the primary metrics used to identify periods of inflation or deflation.

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

Why is this event important? Excessive inflation poses a danger to economic growth and can also hit the prices of financial assets such as stocks and bonds. Therefore, financial market participants monitor CPI figures in order to react in time to a decline or rise in inflation. After all, it ultimately affects the U.S. monetary policy by triggering interest rate changes.

GDP (UK) – Friday, November, 11th 📅

On Friday, November 11, the GDP (UK) will be released at 17:00 (GMT +2). Gross Domestic Product is a measure that aims to give a monetary value to the overall size of an economy over a specified period of time, usually a year. Comparing the GDPs of different countries can inform you about the relative sizes and strengths of their economies. Although it is not perfect, GDP is the best guide to an economy’s size and its ups and downs.

Assets Affected: $GBP and $FTSE100 🇬🇧

Why is this event important? The forthcoming UK GDP data is very important for the market, because in recent months the British economy has been raising concerns. The published GDP data may fuel those fears or curb them. In particular, faster growth could lead to fears of inflation and/or unsustainable economic bubbles. And slower growth would lead to fears of stagnation and declining economic standards.

Prelim Consumer Sentiment US – Friday, November, 11th 📅

The Prelim Consumer Sentiment will be held at 17:00 (GMT +2) on Friday, November 11. Prelim Consumer Sentiment is a statistical measurement of the overall health of the economy as determined by consumer opinion. It takes into account people’s feelings toward their current financial health, the health of the economy in the short-term, and the prospects for longer-term economic growth. It is widely considered to be a useful economic indicator.

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

Why is this event important? Investors closely follow consumer sentiment indexes as they provide a useful indicator of how much demand there is for the goods and services produced by companies listed on the stock market. Over the past few months, the market has reacted mixed to consumer activity data. In particular, the growth of the index has been leading to a decline in key U.S. indices.

Treasury currency report (speculated) – Friday, November, 11th 📅

The Treasury Currency Report (speculated) does not have a confirmed date, but it is speculated to be released at the end of the week. The monthly Treasury Statement summarizes the financial activities of the federal government and off-budget federal entities and conforms to the Budget of the U.S. Government. Treasury’s mission highlights its role as the steward of U.S. economic and financial systems, and as an influential participant in the world economy.

Asset(s) Affected: $US Dollar, $US Stocks and $GOLD 🇺🇸 + 🥇

Why is this event important? The Treasury Report may advance important talking points for investors and shareholders. In particular, the thesis announced could affect the government’s monetary policy.

That’s it for this week! 👋