This week, US ISM Services PMI is due on Monday, jobless claims on Thursday, and on Friday the PPI data will be released 📊
All this will be accompanied by uncertainties with the COVID situation in China, as well as the indecision of OPEC regarding the volume of oil production.
Therefore, despite a small number of important economic events, high volatility of the US dollar and stock markets is expected.
And now let's take a look at the upcoming economic events 🔻
ISM Services PMI – Monday, December 5th
📅 ISM Services PMI will be held on Monday, December 5 at 17:00 (GMT +2).
The ISM Services PMI provides significant information about factors affecting total output, growth, and inflation. When the business activity index is increasing, investors might infer that the stock markets should increase because of higher expected corporate profits.
Asset(s) Affected: $USD and $US Stocks 🇺🇸
Why is this event important?
The ISM Services PMI (formerly the ISM non-manufacturing index) provides for a detailed look at the economy from a non-manufacturing standpoint.
📊 The current ISM Services PMI is 54.4. A higher value of the upcoming release could push the US dollar into a bullish rally, while a lower value could strengthen the weakening of the US national currency.
US Unemployment Claims – Thursday, December 8th
📅 US Unemployment Claims will be released on Thursday, December 8 at 15:30 (GMT +2).
Jobless claims are a statistic reported weekly by the US Department of Labor that counts people filing to receive unemployment insurance benefits.
Asset(s) Affected: $USD and $US Stocks 🇺🇸
Why is this event important?
US Jobless claims are an important leading indicator of the state of the employment situation and the health of the economy.
📊 If initial jobless claims are down, the stock market will often rally upwards. If the initial jobless claims are up, the stock market may slump. The Initial Jobless claims report gets a lot of press due to its simplicity and the basic assumption that the healthier the job market, the healthier the economy. At the same time, a decline of this indicator could provoke a weakening of the dollar.
US Producer Price Index (PPI) – Friday, December 9th
📅 On Friday, December 9, the US Producer Price Index (PPI) will be released at 15:30 (GMT+2).
The Producer Price Index (PPI) measures the average change over time in the selling prices received by domestic producers for their output. The prices included in the PPI are from the first commercial transaction for many products and some services.
Asset(s) Affected: $USD and $US Stocks 🇺🇸
Why is this event important?
The producer price index (PPI) measures inflation from the perspective of costs to the industry or producers of products.
📈 When the PPI of an economy is rising strongly, it tends to result in future inflation in the prices of consumer goods. Accordingly, a rising index has a negative effect on the stock market, but the USD can rise.
📉 A declining PPI signals an upcoming economic slowdown in a country. Benchmark interest rates set by central banks also usually come down during such low or negative inflationary periods. This leads to an increase in business activity and the stock market, too.
US Prelim Consumer Sentiment – Friday, December 9th
📅 On Friday, December 9, the US Prelim Consumer Sentiment will be released at 17:00 (GMT+2).
The Prelim Consumer Confidence Survey reflects prevailing business conditions and likely developments for the months ahead. This monthly report details consumer attitudes, buying intentions, vacation plans, and consumer expectations for inflation, stock prices, and interest rates.
Asset(s) Affected: $USD and $US Stocks 🇺🇸
Why is this event important?
The index aids in measuring consumer sentiments in personal finances, and business conditions, among other topics.
📊 The increase in consumer spending in turn helps the economy sustain its expansion. If for some reason consumer confidence declines, consumers become less certain about their financial prospects, and they begin to spend less money; this in turn affects businesses as they begin to experience a decrease in sales.
That's it for this week! 👋
