During the deeply riveting week ahead, a few major economic events and indicators are set to shake global financial markets. U.S. President Donald Trump’s Wednesday address is one of the most highly anticipated, though. We anticipate this event to be one of the most captivating for investors and analysts. Traders and tourists alike are watching the U.S. dollar closely. Major currency pairs like GBP/USD, USD/CAD and USD/JPY are all trading at or very close to key levels.
China will open the series of major national events on Monday with key economic indicators. We’re talking about GDP numbers, Industrial Production data and Retail Sales releases. These indicators are essential in gauging the health of the world’s second-largest economy. More importantly, they can move market sentiment against emerging markets and commodities in general.
On the same day, the Eurozone will release its Harmonized Index of Consumer Prices (HICP). They will be presenting the Core HICP data. These numbers will offer a glimpse into underlying inflation movements across the Eurozone, pushing the euro lower against other currencies in response.
The U.S. dollar is hovering around 99.30 on the DXY. This figure underscores a perception that while the market is stable for now, investors are feeling skittish. The GBP/USD currency pair is currently flitting around the 1.3400 level, and the CAD/USD pair is sitting close to 1.3910. Similarly, USD/JPY hovers around 158.00, a clear sign of the market’s response to shifting economic tides.
Looking ahead, the rest of the week will see important releases, starting with tomorrow’s Germany’s Producer Price Index and ZEW survey. These reports will offer insights into the economic outlook in Germany and may affect investor confidence in the European economy.
Wednesday will be another big day for the UK, which is about to release its Consumer Price Index (CPI). This release will provide a new window into the inflationary pressures coursing through the UK economy. It raised questions about how it would constrain the Bank of England’s monetary policy decision-making.
On Thursday, the U.S. comes out with its quarterly Gross Domestic Product (GDP) data. It will further introduce Personal Consumption Expenditures (PCE) data for October as well as November. These indicators are critical for assessing economic growth and consumer spending patterns in the U.S., which can significantly affect both domestic and international markets.
Early Thursday morning, Australia will drop their employment figures. This latest update should provide a more full and accurate picture of the country’s labor market conditions to the public. Given ongoing global economic challenges, this data is critical for monitoring economic recovery and recessionary signals in the Asia-Pacific region.
Investors will be watching the ADP Employment Change four-week average like a hawk. They’ll be keeping an eye on the Initial Jobless Claims reports scheduled for the end of this week. These numbers will provide important information about the state of employment in the U.S., the largest single driver of our economic performance.
For those keeping track of the precious metals markets, our XAU/USD cross is presently quoted at $4,620. This price is a product of sustained market reactions to related global economic uncertainty and domestic inflation fears.
Thursday New Zealand will be out with its CPI report. This new prospective data serves to further complicate things for analysts and investors to parse, as they face a week filled with major economic indicators.