Week’s main events (August 21 – August 25)

This week, investors will focus on US Federal Reserve Chairman Jerome Powell’s speech at the Central Bank’s annual conference in Jackson Hole, where he will share his views on the future trajectory of interest rates. Fed executives reiterated that there is still much work to be done in their fight against inflation. Investors should also keep an eye on the People’s Bank of China’s interest rate decision. Chinese banks unexpectedly lowered interest rates last week, and expectations are growing that PBoС will cut the prime rate on Monday. Also, Eurozone countries will publish important data on manufacturing and services PMI that will show the health of the economy during a period of high-interest rates.

Monday, August 21

On Monday, investors should focus on the China Central Bank interest rate decision. Analysts predict that the PBoC will cut rates to offset the economic slowdown. Also, China’s Central Bank may announce additional stimulus for the economy. Investors should also pay attention to trade balance data from New Zealand, which is actively trading with China.

Main events of the day:

– New Zealand Trade Balance (q/q) at 01:45 (GMT+3);
– China PBoC Loan Prime Rate at 04:15 (GMT+3);
– German Producer Price Index (m/m) at 09:00 (GMT+3).

Tuesday, August 22

Tuesday’s trading day will be relatively quiet, with no essential economic events expected. At the US session, traders can pay attention to the speech of the FOMC representative.

Main events of the day:

– US Existing Home Sales (m/m) at 17:00 (GMT+3);
– US FOMC Member Bowman Speaks at 21:30 (GMT+3).

Wednesday, August 23

Wednesday will bring various Manufacturing PMI and Services PMI statistics for many countries. Eurozone and UK PMI indices have been declining in recent months amid stagnation in the services sector coupled with a contraction in manufacturing activity. This data may indicate whether the European Central Bank will raise interest rates again in September and whether the Bank of England will decide to raise rates significantly at the next meeting. Traders should also pay attention to inflation data in Singapore. The US Crude Oil Reserves data, which significantly impacts oil prices, should also be on the trader’s list.

Main events of the day:

– New Zealand Retail Sales (q/q) at 01:45 (GMT+3);
– Australia Manufacturing PMI (m/m) at 02:00 (GMT+3);
– Australia Services PMI (m/m) at 02:00 (GMT+3);
– Japan Manufacturing PMI (m/m) at 03:30 (GMT+3);
– Japan Services PMI (m/m) at 03:30 (GMT+3);
– Singapore Consumer Price Index (m/m) at 08:00 (GMT+3);
– German Manufacturing PMI (m/m) at 10:30 (GMT+3);
– German Services PMI (m/m) at 10:30 (GMT+3);
– Eurozone Manufacturing PMI (m/m) at 11:00 (GMT+3);
– Eurozone Services PMI (m/m) at 11:00 (GMT+3);
– UK Manufacturing PMI (m/m) at 11:30 (GMT+3);
– UK Services PMI (m/m) at 11:30 (GMT+3);
– Canada Retail Sales (m/m) at 15:30 (GMT+3);
– US Manufacturing PMI (m/m) at 16:45 (GMT+3);
– US Services PMI (m/m) at 16:45 (GMT+3);
– US New Home Sales (m/m) at 17:00 (GMT+3);
– US Crude Oil Reserves (w/w) at 17:30 (GMT+3).

Thursday, August 24

On Thursday, the annual meeting of politicians will begin in Jackson Hole, which is worth paying particular attention to. Investors should also closely monitor US GDP data for the quarter. Investors will also focus on US Core Durable Goods Orders as well as weekly labor market data.

Main events of the day:

– Jackson Hole Symposium at 15:00 (GMT+3);
– US Core Durable Goods Orders (m/m) at 15:30 (GMT+3);
– US Initial Jobless Claims (w/w) at 15:30 (GMT+3);
– US Natural Gas Storage (w/w) at 17:30 (GMT+3);
– US FOMC Member Harker Speaks at 19:00 (GMT+3).

Friday, August 25

On Friday, investors will wait for Fed Chairman Jerome Powell’s speech to clarify the economic outlook and the future trajectory of interest rates. Investors will be focused on whether the Fed Chairman believes that further policy tightening will be needed to reduce inflation or whether sufficient progress has been made to keep rates unchanged. Market watchers will also be looking for clues whether the Fed is weighing the prospect of a rate cut in 2024. Traders should also be aware of Tokyo’s inflation data, a leading indicator of nationwide inflation.

Main events of the day:

– Japan Tokyo Core CPI (m/m) at 02:30 (GMT+3);
– German GDP (q/q) at 09:00 (GMT+3);
– German Ifo Business Climate (m/m) at 11:00 (GMT+3);
– Jackson Hole Symposium at 15:00 (GMT+3);
– US FOMC Member Harker Speaks at 16:00 (GMT+3);
– US Michigan Consumer Sentiment (m/m) at 17:00 (GMT+3);
– US Fed Chair Powell Speaks at 17:05 (GMT+3);
– ECB President Lagarde Speaks at 22:00 (GMT+3).

by JustMarkets, 2023.08.21

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