The Top 6 Economic Events of This Week

It’s difficult to go days without reading news about the supply chain, inflation, recession, or economic turmoil. Uncertainty is pervasive, and it’s natural to be concerned. 🌶

Our selection of the top 6 economic news will help you stay informed about important events and improve your trading experience. 🎯

👀 Let's take a look!

European Central Bank (ECB) President Lagarde Speech – (Monday, June 20)

On Monday, June 20, the European Central Bank (ECB) President Lagarde’s Speech will be held at 13:00 GMT.

The European Central Bank President Christine Lagarde’s Speech reflects the official position of the European Central Bank. Therefore, every speech is carefully examined by the market participants and analysts.

As head of the ECB, which sets short-term interest rates, she has a major influence over the euro’s value. Traders watch her speeches closely as they are often used to drop subtle hints regarding future monetary policy and interest rate shifts.

Beware of potential volatility for EUR.

Canada Core Retail Sales m/m – (Tuesday, June 21)

On Tuesday, June 21, the Canada Core Retail Sales m/m will be released at 12:30 GMT.

Canada Core Retail Sales m/m reflect the change in retail sales (in monetary terms) in the reported month compared to the previous one. The index calculation does not include auto and spares sales, which tend to be very volatile.

The publication of the retail sales report may affect the Canadian dollar quotes. A slowdown in the growth of retail sales shows that consumers have reduced their spending level. This may lead to a decline in economic activity and hurt the Canadian dollar.

Beware of potential volatility for CAD.

United States Existing Home Sales - (Tuesday, June 21)

The United States Existing Home Sales will be released on Tuesday, June 21, at 14:00 GMT. The Existing-Home USA Sales data measures sales and prices of existing single-family homes for the nation overall and gives breakdowns for the West, Midwest, South, and Northeast regions of the country. These figures include condos and co-ops, in addition to single-family homes.

New Home Sales are viewed as a lagging indicator of demand but are still closely watched by investors for clues about the broader economic movements. New Home Sales data is based on a representative sample of home sales and is driven by factors such as household income, unemployment, and interest rates. Accordingly, the report is used to evaluate the US real estate market. The indicator growth can have a positive effect on US dollar quotes.

Beware of potential volatility for USD.

Federal Reserve System (Fed) Chair Powell Testimony – (Wednesday, June 22)

The Federal Reserve System (Fed) Chair Powell’s Testimony will be held on Wednesday, June 22, at 13:30 GMT.

Federal Reserve Chair Jerome Powell is to testify on the economic outlook and recent monetary policy actions before the Joint Economic Committee in Washington DC.

Chair Jerome Powell said the Federal Reserve would raise its benchmark short-term interest rate faster than expected and high enough to restrain growth and hiring if it decides this would be necessary to slow rampaging inflation.

In general, an interest rate hike makes borrowing more expensive. So any purchase that requires a loan — for a home, car, or higher education — could be affected. This negatively affects stock markets and leads to an increase in the dollar index.

Beware of potential volatility for USD.

EIA United States Crude Oil Stocks Change - (Thursday, June 23)

The EIA United States Crude Oil Stocks Change will be released on Thursday, June 23, at 15:00 GMT. The Energy Information Administration's (EIA) Crude Oil Inventories measures the weekly change in the number of barrels of commercial crude oil held by US firms. The level of inventories influences the price of petroleum products, which can impact inflation.

Based on this, beware of potential volatility for Brent, WTI, and USD.

German Manufacturing Purchasing Managers' Index (PMI) - (Thursday, June 23)

The German Manufacturing Purchasing Managers' Index (PMI) will be released on Thursday, June 23, at 10:30 GMT.

The German Manufacturing PMI measures the activity level of purchasing managers in the manufacturing sector. A reading above 50 indicates expansion in the sector; below indicates contraction. Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.

A higher than expected reading can be interpreted as positive/bullish for the EUR, while a lower than expected reading as negative/bearish for the EUR.

Based on this, beware of potential volatility for EUR.

That's it for this week!

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