🔥 This week we are expecting several important data releases that could affect the USD, U.S. stocks, the Canadian dollar, and other assets.
📣 In particular, on Tuesday, U.S. durable goods orders and new home sales will be released, which will give us an indicator of economic activity, and housing demand, respectively. Also, on Friday, U.S. personal spending and income and the University of Michigan consumer sentiment survey will be released. But there's more!
👇 Let's take a look at this week's economic events in more detail
US CB Consumer Confidence – Tuesday, September, 27th
The US CB Consumer Confidence will be released at 17:00 on Tuesday, September 27.
Asset(s) Affected: USD and US Stocks 🇺🇸
Why is this event important?
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. Higher readings point to higher consumer optimism.
Based on this, 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.
Durable Goods Order – Tuesday, September, 27th
On Tuesday, September 27, the Durable Goods Orders will be released at 15:30 GMT+3.
Asset(s) Affected: USD and US Stocks 🇺🇸
Why is this event important?
Core durable goods orders are orders of goods with an expected useful life of at least three years, excluding transportation equipment.
A durable goods report that shows an increase in orders is a sign that the economy is trending upward. Durable goods orders tell investors what to expect from the manufacturing sector, which is a major component of the economy.
US Pending Home Sales – Wednesday, September, 28th
On Wednesday, September 28, the US Pending Home Sales will be released at 17:00 GMT+3.
Asset(s) Affected: USD and US Stocks 🇺🇸
Why is this event important?
The Pending Home Sales Index (PHS), a leading indicator of housing activity, measures housing contract activity, and is based on signed real estate contracts for existing single-family homes, condos, and co-ops.
The number of signed contracts to buy existing homes in the US were down 2.3% in September, partially reversing from an 8.1% surge in August and much worse than market forecasts of a flat reading. If the decline continues this time, it could have a negative impact on the U.S. dollar and stocks.
Canada Gross Domestic Product (GDP) – Thursday, September, 29th
The Canada Gross Domestic Product (GDP) will be released on Thursday, September 29 at 15:30 GMT+3.
Asset(s) Affected: CAD 🇨🇦
Why is this event important?
Gross Domestic Product (GDP) measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy's health.
A stronger-than-expected number should be taken as positive for the CAD and a lower-than-expected number as negative to the CAD.
Final GDP q/q & US Unemployment – Thursday, September, 29th
The US Final GDP q/q & US Unemployment will be released on Thursday, September 29.
Asset(s) Affected: USD and US Stocks 🇺🇸
Why is this event important?
GDP measures the monetary value of final goods and services — that is, those that are bought by the final user — produced in a country in a given period of time (say a quarter or a year). In the meantime, in the United States, the unemployment rate measures the number of people actively looking for a job as a percentage of the labour force.
These two essential economic indicators will be released on the same day, so they can affect the US dollar and the stock market.
EU CPI Estimates – Friday, September, 30th
The EU CPI Estimates will be released on Friday, September 30 at 12:00 GMT+3.
Asset(s) Affected: EUR and EU Stocks 🇪🇺
Why is this event important?
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.
A higher-than-expected reading should be taken as positive/bullish for the EUR, while a lower-than-expected reading should be taken as negative/bearish for the EUR.
The US PCE Price Index – Friday, September, 30th
The US PCE Price Index will be released on Friday, September 30 at 17:30 GMT+3.
Asset(s) Affected: 🇺🇸 US – USD and US Stocks.
Why is this event important?
The PCE Price index is the Federal Reserve's preferred measure of inflation. The PCE Price Index is similar to the Bureau of Labor Statistics' consumer price index for urban consumers. The two indexes, which have their own purposes and uses, are constructed differently, resulting in different inflation rates.
Price data for the PCE index comes from surveys of businesses, rather than what consumers say they're spending on goods and services. The PCE's basket of goods and services changes regularly to account for substitution — when prices for one item rise, consumers shift their spending to cheaper alternatives.
That's it for this week!👋
