mask Week Ahead | Here Comes the FED

17/ 09/ 2017

Week Ahead | Here Comes the FED

18th September 2017 - 22nd September 2017

Monday

  • EUR Consumer Price Index
  • USD NAHB Housing Market Index

Slow start to the week with the release of CPI from Euro zone which captures the changes in the price of goods and services. By evening we will see the release of NAHB Housing Price Index which presents home sales and expected home buildings in the future indicating housing market trend in the United States.

Tuesday

  • EUR ZEW Survey - Economic Sentiment & Current Situation
  • USD Housing Starts and Building Permits

We await another calm day in the markets with only mid-tier macroeconomic data coming from Germany and USA. First up we will see the results of the two economic surveys from Germany, which shows the investor sentiment in the region.

For the second day in a row we get see more housing data from USA with the release of Housing Starts and Building Permits. Housing Starts is an indicator that tracks how many new single-family homes or buildings were constructed while Building Permits shows the number of permits for new construction projects.

Wednesday

  • EUR Producer Price Index
  • GBP Retail Sales
  • USD FOMC Economic Projections, FED Interest Rate Decision & Press Conference

The biggest day of the week where FED decision on interest rate and live press conference will be watched closely by the markets. First up we will see PPI Figures from Germany which measures the average changes in prices in the German primary markets. We will then see Retail Sales report from UK which measures the total receipts of retail stores in UK.

Then comes the all-important FED Rate decision which will be followed by a live press conference. The Fed is expected to announce the beginning of Quantitative Tightening or the beginning of reducing its 4.5 trillion dollar balance sheet. The focus will be on the timing of the next interest rate hike. Will it happen in December, completing three hikes in 2017? Or has recently weak inflation undermined the chances? This is the big question for skeptical markets and the US dollar.

Thursday

  • JPY BOJ Interest Rate Decision & Press Conference
  • GBP Public sector Net Borrowing
  • USD Continuing & Initial Jobless Claims

Thursday, early morning we will see the rate decision and press conference from Japan. The Bank of Japan is not really successful in achieving the 2% inflation goal, to say the least. The future of Governor Kuroda also hangs in the balance.

By afternoon we will see the release of UK Public Sector net borrowing, which captures an amount of new debt held by the U.K. government. This will be followed by Job data from USA with the release of Continuing and Initial Jobless Claims.

Friday

  • EUR Markit Manufacturing PMI, Markit Services PMI & Markit PMI Composite
  • EUR Markit Manufacturing PMI, Markit Services PMI & Markit PMI Composite