The Federal Reserve, the European Central Bank, and the Bank of England are due to meet on different days this week and make interest rate decisions that could shake up the market.
Stay informed, prepare for any market movements with our recap, and make the most of this exciting opportunity to secure your trades.
United States Consumer Confidence Index – Tuesday, January 31st
📅 The Conference Board United States Consumer Confidence Index (CCI) will be released on Tuesday, January 31, at 17:00 (GMT +2).
📌 The CCI measures American consumers' attitudes and perceptions towards the economy, including their views on current business and labor conditions. It is used to predict consumer spending, a key factor in determining the economy's overall health.
📊 A high CCI generally indicates that consumers are optimistic about the economy and are more likely to spend money, which can boost economic growth and drive up the value of US stocks and the Dollar. Conversely, a low index may indicate that consumers are more cautious about spending, which can slow economic growth and potentially cause stocks and the dollar to decrease in value. Therefore, traders who trade US Dollars and stocks should closely monitor changes in consumer confidence.
Assets potentially to be affected: $USD and $US Stocks 🇺🇸
Federal Reserve Interest Rate Decision – Wednesday, February 1st
📅 The Fed's decision on interest rate changes will be announced at a press conference at 21:30 (GMT +2) on Wednesday, February 1.
📌 The US interest rate is the interest rate set by the Federal Reserve, the central bank of the United States. This key rate controls the money supply and manages the economy by affecting the cost of borrowing. Changes in the key rate can significantly impact the financial markets, including the stock market and currency exchange rates.
📊 The Fed's upcoming rate change is very important to the market, as its decline could signal a slowdown in US inflation. If the rate is raised by just 25 basis points, it could push the stock market higher.
Assets potentially to be affected: $USD and $US Stocks 🇺🇸
United States JOLTS Job Openings – Wednesday, February 1st
📅 On Wednesday, February 1, the United States JOLTS Job Openings will be released at 17:00 (GMT+2).
📌 JOLTS stands for Job Openings and Labor Turnover Survey. It's a monthly survey by the US Bureau of Labor Statistics (BLS) that measures the number of job openings in the US economy and hires and separations.
📊 A JOLTS Job Openings indicator change can affect the US Dollar and stock quotes. If the number of job openings increases, it signals a growing and robust economy, which can boost investor confidence and lead to a stronger USD and higher stock prices. On the other hand, if job openings decrease, it signals a weakening economy, which can cause investor concern and lead to a weaker US Dollar and lower stock prices.
Assets potentially to be affected: $USD and $US Stocks 🇺🇸
OPEC Meeting – Wednesday, February 1st
📅 On Wednesday, February 1, the OPEC Meeting will be held at 17:30 (GMT+2).
📌 OPEC (Organization of the Petroleum Exporting Countries) Meeting is a regular gathering of the members of cartels of oil-producing countries. The purpose of the meeting is to discuss and coordinate the member countries' oil policies and production levels to stabilize the oil market and maintain price stability.
📊 OPEC decisions on oil production levels influence the global oil supply and demand, affecting oil prices. If OPEC decides to reduce production, it results in lower supply and higher prices. Conversely, if OPEC increases production, it leads to a surplus of supply and a decrease in prices.
Assets potentially to be affected: $WTI and $Brent 🛢️
BOE & ECB Interest Rate – Thursday, February 2nd
📅 The BOE and ECB will announce interest rate changes on Thursday, February 2, at 14:00 and 15:15 (GMT +2), respectively.
📌 The interest rate set by the BOE and the ECB are official rates at which these central banks lend money to the local commercial banks. A change in the interest rate can impact the exchange rate of the national currency and the overall economy.
📊 The forthcoming decision to change the European and British central banks' interest rates is also important. If the announced rate hike slows down, it will likely push the markets due to optimism. So prepare for volatility.
Assets potentially to be affected: $EUR & $GBP and stocks 🇬🇧🇪🇺
United States Nonfarm Payrolls – Friday, February 3rd
📅 The United States Nonfarm Payrolls will be released on Friday, February 3 at 15:30 (GMT +2).
📌 The United States Nonfarm Payrolls is a monthly economic indicator released by the Bureau of Labor Statistics (BLS) that measures the change in the number of employed people in the US, excluding farm workers, private household employees, and non-profit organization employees.
📊 The expected US Nonfarm Payrolls report will indicate a continued slowdown in the US labor market for the fourth quarter. The report's release following the Fed meeting could have a significant impact based on the conclusions drawn by US policymakers. If the Fed maintains its strong stance, a lack of job growth and a higher unemployment rate could heighten worries about a potential recession.
Assets potentially to be affected: $USD and $US Stocks 🇺🇸
That's it for this week! 👋
