This week, all eyes are on the Federal Reserve's policy meeting on Wednesday. Although the Board of Governors is anticipated to maintain rates despite inflationary signals, a termed "hawkish pause", subsequent data could prompt tightening at the October 31st meeting. Investors should watch for data in the upcoming weeks to gauge potential Fed actions.
Additionally, other significant releases are expected this week that merit attention.
Dive in as we dissect these top economic events!
🇺🇸 August’s Building Permits and Housing Starts
On Tuesday, September 19, the focus will shift to housing starts and building permits data. These figures provide a deep insight into the health of the housing sector, influencing decisions in construction and associated fields. As leading indicators, they help economists and analysts gauge present demand and predict forthcoming real estate trends and their ripple effects on related sectors. The release could also impact assets like the US Dollar and US stocks.
🇺🇸 Fed Interest Rate Decision
The spotlight for the week will be on Wednesday, September 20, at 21:00 GMT+3, when the Federal Reserve announces its interest rate decision. Immediately after the announcement, Fed Chair Jerome Powell will address a press conference. This global-anticipation event carries significant ramifications for global financial markets. Heightened volatility is expected across various assets, including currency pairs like EUR/USD and GBP/USD, as well as Gold, Dow Jones, and SPX500.
🇺🇸 September’s Philadelphia Fed Manufacturing Survey
On Thursday, September 21, a slew of economic data is set for release, encompassing jobless figures, the Philadelphia Fed manufacturing survey results, current account deficit statistics, leading economic indicators, and data on existing home sales. The Philadelphia Fed's survey, covering areas like Philadelphia, New Jersey, and Delaware, is particularly noteworthy. It gauges the manufacturing conditions within these regions and is seen as a reliable precursor to the national Manufacturing PMI and ISM Manufacturing indexes. Such comprehensive data can significantly influence various assets in the financial markets, emphasizing the importance of monitoring these indicators for traders and investors.
🇬🇧 BoE Interest Rate Decision
On Thursday, September 21, the financial world will be intently focused on the Bank of England's (BoE) Interest Rate Decision. With the current rate standing at 5.25%, there's widespread anticipation of a 25 basis point hike, potentially bringing the rate to 5.50%. Given the significance of this decision, heightened volatility is expected, particularly for the GBP/USD currency pair and the FTSE100 index. Investors and traders should brace for potential market movements following the announcement.
🇺🇸 S&P Flash US Services and Manufacturing PMI
On Friday, September 22, the market will be keenly awaiting the release of the S&P flash US services and manufacturing purchasing managers' indexes (PMI). These indices are pivotal in gauging the economic vitality of the service and manufacturing sectors – two primary pillars of the US economy. Serving as leading indicators, PMI indices offer timely insights into shifts in economic conditions. Often, the direction and pace of PMI shifts precede broader economic changes. Given their importance, these releases are invaluable for economists, analysts, and investors monitoring US economic trajectories.
That's it for this week! 👋
