This week, investors will be closely monitoring the Purchasing Managers Indices for the manufacturing and services sectors, providing a comprehensive perspective on the state of the US economy. However, the key event will be Friday's extensive labor market data release, expected to illuminate recent developments in job creation and losses, alongside wage growth patterns.
These reports, among others, are likely to significantly influence expectations regarding the Federal Reserve's future monetary policy decisions.
🇺🇸 JOLTS Job Openings
This Tuesday at 17:00 GMT+3, a key financial event, the release of the JOLTS (Job Openings and Labor Turnover Survey) report, is expected. The monthly data provides insights into job vacancies across the US commercial, industrial, and office sectors, serving as a major influence on the US economy and the global financial market.
Notably, the data release could impact the US Dollar and stocks, including major indices like Dow Jones and Nasdaq. Forecasts anticipate an increase in job vacancies, suggesting potential positive implications for these assets.
🇺🇸 ADP Nonfarm Employment Change
On Wednesday at 15:15 GMT+3, another significant data release is set to take place: July’s ADP Employment Change, which details the private payroll numbers. These figures serve as an important precursor to the much-anticipated Non-Farm Payrolls (NFP) report due just two days later.
This week, expectations are running high for an addition of 195k new jobs in July within the US economy. The correspondence between the ADP and NFP data is crucial since they often reflect the same labor market conditions.
The release has a significant influence on the US Dollar, Gold, and Stocks, as the state of the US labor market is a major driving factor for these assets.
🇺🇸 ISM Non-Manufacturing PMI
On Thursday, at 17:00 GMT+3, look out for the release of July’s ISM Services PMI report. Released by the Institute for Supply Management, this data provides crucial insights into business conditions within the US services sector - the most substantial contributor to the country's GDP.
The ISM Services PMI is a forward-looking indicator, shedding light on factors that can influence GDP growth and inflation. A rise in the business activity index is often interpreted by investors as a signal for potential increases in the stock market, given the expected boost in company earnings. As such, this release carries significant weight in the investment community and can have a meaningful impact on financial market movements.
🇬🇧 BoE Interest Rate Decision
Earlier, at 14:00 GMT+3, the spotlight shifted to the Bank of England (BoE) Interest Rate Decision. With the Federal Reserve recently raising rates by 0.25% and the European Central Bank maintaining a hawkish stance, the market is keenly awaiting the BoE's next move. Will they follow suit in tightening monetary policy?
There are expectations of the BoE raising the rates to 5.25% due to persistently high inflation. This is despite economists and markets factoring in the risk of a repeat of June's surprise half-point hike, as inflation continues to run hotter than in other large economies.
🇺🇸 Nonfarm Payrolls
This Friday is the release of the Non-Farm Payrolls (NFP) report for July. This vital economic indicator is anticipated with high expectations of the US economy adding 200k new jobs, while the unemployment rate is expected to remain steady at 3.6%.
Don't miss out on the NFP report as it holds the potential to significantly influence major indices, the US Dollar, and Gold. With the market still contending with the volatility following the Federal Reserve's recent decisions, the release of the NFP data could spur further fluctuations in these pivotal financial assets.
That's it for this week! 👋
