2023-08-20 14:02:52
The currency markets are awaiting the issuance of many reports and economic data during this week (21-25 August), which will have a significant impact on various markets, especially the US dollar and the euro. The most important of these data are the following:
Currency markets and interest rate decision in China
The markets are awaiting the issuance of primary interest decisions in China for a year and for a period of 5 years at the beginning of the new trading week, and these decisions did not have a significant impact on the markets earlier, but in light of the important economic developments in China, and the weak economic growth of the country, the currency markets are watching the data. China’s economy, especially interest decisions, as China is trying to cut interest rates to support the country’s economy, and then these decisions will have a significant impact on the markets, especially on crude oil prices.
Currency markets and data for the manufacturing and service sectors in Europe
It is issued on Wednesday morning, and this data is always reflected in the movements of the euro against other currencies, especially as it shows the extent to which the European economy has recovered or not due to the repercussions of the outbreak of the new Corona virus. interest during the bank’s upcoming meeting in September.
The primary reading for US manufacturing and services purchasing managers
It is expected that this data will be released on Wednesday at 13:45 GMT, and this data will have a strong impact on the currency market, especially since this data gives an initial indication about the pace of economic recovery in the manufacturing and services sectors in the United States, which affects the Fed’s upcoming monetary policy decisions, and if The readings were better than expected, as this positively affects the movements of the US dollar against other currencies, and vice versa.
US oil inventories data
The data for this indicator will be released on Wednesday at 02:30 pm GMT. This indicator measures the change in the total number of barrels of crude oil in the inventories of commercial companies during the past week. Previous data had revealed a decrease in inventories by 6.0 million barrels, which greatly supported crude oil prices. Thus, the currency markets will be watching this new inventory data due to its significant impact on price levels.
US unemployment benefits and currency markets
The currency markets are awaiting this data on Thursday, as this data gives an impression about the conditions in the US labor market, which in turn greatly affects the monetary policy decisions of the US Federal Reserve, and if the data came less than expected, this is positively reflected in the movements of the US dollar, while if the data came larger It is expected that this negatively affects the dollar’s movements against other currencies.
The statements of the US Federal Reserve Governor at the Jackson Forum and the movements of the currency markets
It will be issued on Friday at exactly 2.05 pm GMT, and it will have a strong and clear impact on the movements of the currency markets, especially for the US dollar, amid expectations that it will include strong signals about the interest decision next September, and therefore, these statements will have the utmost importance for traders within the currency markets. This week, after the release of the results of last week’s Federal Reserve meeting, which showed the Bank’s members’ willingness to move forward in tightening monetary policy to curb high inflation.
Read also:
Currency Markets Summary for the Week Ending – August 18, 2023
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