The markets will be closed this Monday in honor of President’s Day, but that’s unlikely to halt the market fluctuations we’ve been experiencing recently. More major companies are releasing earnings this week, and several economic events will likely move the markets ahead.
Here are 5️⃣ major events to watch this week 👇
European Union PMI – Tuesday, February 21st
📅 European Union PMI will be released on Tuesday, February 21 at 10:15 (GMT +2).
📌 The EU Purchasing Managers' Index (PMI) is a widely watched economic indicator based on surveys completed by purchasing managers in the manufacturing and services sectors of the EU's economy. It is considered a leading indicator of economic growth and is closely monitored by policymakers, investors, and analysts alike.
📊 Assets sensitive to changes in economic conditions, such as stocks, currencies, and commodities, could be affected by changes in the EU PMI. For example, if the PMI reading is higher than expected, stock markets may rally, and the euro may strengthen against other currencies. On the other hand, if the PMI reading is lower than expected, stock markets may decline, and the euro may weaken against other currencies.
Assets potentially to be affected: $EUR and $EU Stocks 🇪🇺
US PMI – Tuesday, February 21st
📅 US PMI will be released on Tuesday, February 21 at 16:45 (GMT+2).
📌 The ISM PMI is a closely watched economic indicator that provides insight into the health of the US manufacturing sector and is used by analysts and investors to track changes in economic activity and gauge the overall direction of the US economy.
📊 The ISM PMI can significantly impact the US Dollar and US stocks. A higher-than-expected PMI reading is generally seen as positive for the US economy. It suggests that the manufacturing sector is expanding, which can lead to increased business investment, job creation, and higher economic growth.
Assets potentially to be affected: $USD and $US Stocks 🇺🇸
FOMC Minutes – Wednesday, February 22nd
📅 On Wednesday, February 22, the FOMC Minutes will be held at 21:00 (GMT+2).
📌 Federal Open Market Committee is a policy-making body of the Federal Reserve System in the United States. The FOMC is responsible for making decisions related to monetary policy, including setting interest rates and managing the money supply. The FOMC Minutes summarize the discussions and decisions made by the committee members during their meetings.
📊 The Fed's decision could signal investors a further 25-50 basis point key rate hike by the next rate meeting. This is important for medium- and long-term forecasting of the dollar, stock prices, and other assets.
Assets potentially to be affected: $USD and $US Stocks 🇺🇸
United States Prelim GDP q/q – Thursday, February 23rd
📅 On Thursday, February 23, the United States GDP q/q will be released at 15:30 (GMT+2).
📌 United States GDP q/q refers to the quarterly change in the country's Gross Domestic Product (GDP), which measures the total value of all goods and services produced within the country's borders during a specified period.
📊 If the GDP q/q data shows an increase in economic growth, it can be a positive sign for the US Dollar and the stock market. A strong GDP q/q figure can signal that the US economy is growing healthy, increasing demand for the US Dollar as investors view the economy as stable and attractive for investment.
Assets potentially to be affected: $USD and $US Stocks 🇺🇸
United States Core PCE Price Index – Friday, February 24th
📅 United States Core PCE Price Index will be released on Friday, February 24, at 15:30 (GMT +2).
📌 The Core PCE Price Index is a metric used to gauge inflation in the US. It monitors variations in consumer product and service costs, excluding food and energy expenses. Compared to other measures like the Consumer Price Index (CPI), it is a more dependable indicator of inflation because it considers a wider range of goods and services and is less susceptible to short-term price changes.
📊 A rising Core PCE Price Index is also considered a measure of economic growth: while personal spending stimulates inflationary pressures, it could lead to rising interest rates. A high reading is positive (or Bullish) for the US Dollar.
Assets potentially to be affected: $USD and $US Stocks 🇺🇸
That's it for this week! 👋
