mask Week Ahead | Euro Hits 3-week Peak after Fed Easing signs but Focus will be Trump vs XI Meeting

24/ 06/ 2019

Week Ahead | Euro Hits 3-week Peak after Fed Easing signs but Focus will be Trump vs XI Meeting

24th June 2019 - 28th June 2019

Monday

  • Germany IFO Business Climate
  • GBP Inflation Report Hearings

This German business sentiment index released is closely watched as an early indicator of current conditions and business expectations in Germany, the positive economic growth anticipates bullish movements for the EUR. To conclude the day GBP Inflation Report Hearing will be released which is the report which will examine the expenditure, administration and policy of the current UK Government and its policies.

 

Tuesday

  • BOJ Monetary Policy Meeting Minutes
  • Fed Chairperson Jerome Powell’s Speech

First report will reach by dawn of Tuesday from Bank of Japan a study of economic movements in Japan after the actual meeting. These meetings are held to review economic developments inside and outside of Japan and indicate a sign of new fiscal policy. Any changes in this report tend to affect the JPY volatility. Followed by speech from Federal Reserve Chairperson Jerome Powell which will give us an insight on their current Economic Policies and their future Rate cut decisions which are to be made.

 

Wednesday

  • US Durable Goods
  • US Nondefense Capital Goods ex Aircrafts

The Durable Goods Orders will be released by the US Census Bureau which measures the cost of orders received by manufacturers for durable goods, which means goods planned to last for three years or more, such as motor vehicles and appliances. The final figure shows the state of US production activity. Final major report of the day will be from US which are Nondefense Capital Goods Orders Excluding Aircraft which measures the cost of orders received by manufacturers for capital goods. This is a key indicator of the US Production activity

 

Thursday

  • Germany Harmonized Index of Consumer Price
  • US Gross Domestic Product

Harmonized Index of Consumer Price is a measure of prices used by Governing Council of EU to define and assess price stability in the euro area as a whole in quantitative terms. Followed by US Gross Domestic Product Annualized released shows the monetary value of all the goods, services and structures produced within a country in a given period of time. GDP Annualized is a gross measure of market activity because it indicates the pace at which a country's economy is growing or decreasing.

 

Friday

  • GBP Gross Domestic Product
  • Euro Consumer Price Index
  • US Personal Spending & Income
  • G20 Meeting, Trump & Xi Meeting

 

The Gross Domestic Product released is a measure of the total value of all goods and services produced by the UK. The GDP is considered as a broad measure of the UK economic activity. The Euro Zone CPI released captures the changes in the price of goods and services. The CPI is a significant way to measure changes in purchasing trends and inflation in the Euro Zone. Personal spending & Personal Income released measures the total income received & spent by individuals, from all sources including wages and salaries, interest, dividends, rent, workers' compensation, proprietors' earnings, and transfer payments. This figure can provide insight on the US employment situation.

The highlight of those talks will be the face-to-face meeting between President Donald Trump and Chinese President Xi Jinping. That they are meeting at all was enough to send stocks higher last week. Now there is pressure for the two sides to ensure at the very minimum that their tariff battle doesn’t worsen.

Any hint they’re prepared to get talks back on track toward a deal would be welcome news for a global economy dented by the uncertainty