The most important economic data this week from 05 to 09 Sep 2022

Monday, September 05, 2022 - 12:59
Point Trader Group

The most important data expected this week

 

United State

Institute of Supply Management (ISM) Non-Manufacturing PMI (August) - Tuesday (04:00 pm)

The ISM Services Purchasing Managers' Index rose unexpectedly to 56.7 in July of 2022, the highest level in 3 months, from 55.3 in June and exceeds market expectations of 53.5. Faster increases were seen in production (59.9 vs. 56.1) and new orders (59.9 vs. 55.6), while employment fell less (49.1 vs. 47.4) and price pressures eased (72.3 vs. 80.1). On the other hand, stocks fell at a faster pace (45 vs. 47.5). “Availability issues with ground transportation, restricted labor pooling, various material shortages and inflation remain obstacles for the service sector,” said Anthony Neves, president of the Institute for Supply Management.

 

Unemployment Claims Rates - Thursday (2:30 pm)

The number of Americans filing new claims for unemployment benefits fell by 5,000 to 232 thousand in the week ended August 27, from a downwardly revised 237,000 in the previous period and well below market estimates of 248,000. It was the lowest level for initial claims since the week ending June 25, indicating tight business conditions even amid slowing economic growth. On a seasonally unadjusted basis, initial claims fell 2,492 from the previous week to 176,793, with notable decreases being reported in Connecticut (-1,816), Missouri (1,370), Oklahoma (-1,334) and Georgia (-1,069). On the other hand, the number of applications increased in New York (4,754) and Massachusetts (3,079). The 4-week moving average, which removes weekly volatility, was 241,500, the lowest since July 9.

 

Fed Chair Powell Speech - Thursday (03:10 pm)

Fed Chairman Powell said during his speech at the Jackson Hole Symposium that lowering inflation would likely require a sustained period of off-trend growth, but failure to restore price stability would mean much greater pain. The Fed chair also said that another unusually large increase may be appropriate at the upcoming meeting, but that the decision for September will depend on the totality of incoming data and evolving expectations. He also added that at some point, as the monetary policy stance tightens, it will likely become appropriate to slow the pace of increases. The Federal Reserve raised the target range for the federal funds rate by 75 basis points to 2.25%-2.5% at its July 2022 meeting, its fourth consecutive rate hike, and has pushed borrowing costs to the highest level since 2019.

 

United kingdom

Bank of England Governor Bailey Speech - Wednesday (11:00 am)

The markets are awaiting the speech of Andrew Bailey, Governor of the Bank of England (March 2020 - March 2028) as the man wields more influence on the pound than anyone else in his position as chair of the Bank of England monetary policy committee, which controls interest rates on the pound. short term. Traders are closely following his public statements in an attempt to anticipate the future monetary policy. His comments could set off an upward or downward trend in the near term.

 

euro

ECB Rate Decision (September) - Thursday (02:15 am)

European Central Bank policymakers noted that a 50 basis point rate hike in July should be seen as a downstream burden out of negative rates and necessary for monetary policy normalization, rather than referring to an expected rate change as the end point of the normalization cycle, minutes from the European Central Bank meeting in July 2022 Show. Meanwhile, additional increases in borrowing costs will be made on a meeting-by-meeting basis and will depend on the data, although additional increases will be appropriate at upcoming meetings. The minutes also showed unanimous support for the new transmission protection tool. Meanwhile, policy makers at the European Central Bank considered that inflation risks have increased and noted that the decline in economic activity in the euro area may extend into 2023. The European Central Bank raised its three key interest rates by 50 basis points during its meeting in July 2022, which is The first increase since 2011, ending eight years of negative rates, in an effort to release inflationary pressures.

 

 

Canada

Bank of Canada Interest Rate Decision - Wednesday (4:00 pm)

The Bank of Canada raised its target overnight interest rate by a full percentage point to 2.5% on July 13, 2022, a move not seen since 1998 and surprising analysts who had expected a 75 basis point rise while noting that it would raise rates further in the US. Next meeting to curb high inflation. The bank also continues its quantitative tightening policy. The committee noted that inflation has become more stable than the Bank expected in its April monetary policy report, and is likely to remain around 8% for the next few months. It also lowered its growth forecasts for 2022 and 2023, saying tightening financial conditions would calm pent-up demand.

 

all times are +2 gmt


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