mask Week Ahead | FED, BoE, UK leadership race, and Trade War in focus

17/ 06/ 2019

Week Ahead | FED, BoE, UK leadership race, and Trade War in focus

17th June 2019 - 21st June 2019

Monday

  • GBP Inflation Report Hearing
  • Euro Labor Cost

First report to hit the Market is GBP Inflation Report Hearing to examine the expenditure, administration and policy of HM Treasury, HM Revenue & Customs, and associated public bodies, including the Bank of England and the Financial Services Authority. Later on that day Euro Labor Cost report will be released which shows the short-term development of the total hourly costs incurred by the employers of maintaining their employees. It measures the cost pressure arising from the production factor 'labor'.

 

Tuesday

  • Euro ZEW Economic Sentiment

Tuesday the Major Data will be from Germany & Euro Zone such as the ZEW Economic Sentiment which measures the institutional investor sentiment, reflecting the difference between the share of investors that are optimistic and the share of analysts that are pessimistic

 

Wednesday

  • GBP Consumer Price Index
  • US FOMC Economic Projection, Fed Monetary Policy Statement, Interest Rate Decision

To kick off the busy week UK will release their Consumer Price Index which is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. The purchase power of GBP is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. Focus of this week will be around US FOMC Economic Projection & Monetary Policy Statement & their Interest Rate Decisions. Since US Dollar is the Key driver of the Foreign Markets a Rate Cut on the Dollar will increase volatility of Markets.

 

Thursday

  • GBP BOE Interest & Minutes

It will not be as busy as Wednesday since Fed Decisions are out of the picture now, Markets will move back to focus on UK Interest Rate Decision & their Minutes of Future policies. BoE Interest Rate Decision is announced by the Bank of England. If the BoE is hawkish about the inflationary outlook of the economy and raises the interest rates it is positive, or bullish, for the GBP

 

Friday

  • Germany Markit Manufacturing PMI
  • Euro PMI Composite

Since Germany is the largest Economy of the European Zone the Manufacturing Purchasing Managers Index (PMI) released will be a key data which captures business conditions in the manufacturing sector. As the manufacturing sector dominates a large part of total GDP, the manufacturing PMI is an important indicator of business conditions and the overall economic condition in Germany. Follow suit by Euro PMI Composite which is released by Markit Economics, are based on a large number of business executives in private sector manufacturing and services companies