Top 5 Economic Events To Watch | January 23 – 27 - 2023

Eurozone, UK, and US PMI Services and Manufacturing – Tuesday, January 24th

📅 During Tuesday, January 24, Eurozone, UK, and US PMI Services and Manufacturing Indexes will be released one by one, starting at 10:15 and ending with the last one at 16:45 (GMT+2). See our calendar for the exact times of each PMI releases.

📌 The PMI (Purchasing Managers' Index) measures economic activity in the service and manufacturing sectors. In the Eurozone, the UK and the US, the PMI is closely watched by investors as it provides insight into the economy's health.

📊 A high PMI suggests that businesses are expanding and the economy is growing, which can lead to increased demand for stocks and a stronger national currency. Conversely, a low PMI suggests that businesses are contracting and the economy may be headed for a recession, leading to decreased demand for stocks and a weaker national currency. It's important to note that these parameters can also affect other economies and markets and interest rate decisions by central banks.

Assets potentially to be affected: Euro, US Dollar, GBP and Equities 🇪🇺🇬🇧🇺🇸

US Advance GDP – Thursday, January 26th

📅 On Thursday, January 26, the US Advance GDP will be released at 15:30 (GMT +2).

📌 The US Advance Gross Domestic Product (GDP) is a measure of the economic activity in the United States. It is the market value of all goods and services produced in the country during a given period, usually a quarter (three months) or a year. It is one of the most closely watched indicators of the economy, giving an overall picture of economic growth and performance.

📊 The US Advance GDP can affect various assets such as stocks, bonds, and currencies. A strong GDP growth rate can indicate a strong economy and increased investor confidence, leading to higher stock prices, lower bond yields and a stronger currency. On the other hand, a weak GDP growth rate can indicate a weak economy and decreased investor confidence, leading to lower stock prices, higher bond yields and a weaker currency. Additionally, the central bank closely monitors the GDP growth rates when making monetary policy decisions. A strong GDP growth rate could lead to interest rate hikes, affecting bond prices and currency value.

Assets potentially to be affected: $USD and $US Stocks 🇺🇸

PCE Price Index – Friday, January 27th

📅 The PCE Price Index will be released on Friday, January 27 at 15:30 (GMT +2).

📌 The Personal Consumption Expenditure (PCE) Price Index measures inflation in the United States. The index measures the changes in the prices of a basket of goods and services typically consumed by households, including items such as food, clothing, housing, and healthcare.

📊 The PCE Price Index is important for traders and investors to track because it provides insight into the inflationary pressures of the economy and can affect various assets such as stocks, bonds, and currencies. High inflation can erode the purchasing power of investors' money, leading to lower returns on investments such as stocks and bonds. If the inflation rate is higher than the target set by the Federal Reserve, the central bank may decide to raise interest rates to slow down the economy and curb inflation.

Assets potentially to be affected: $USD and $US Stocks 🇺🇸

That's it for this week! 👋