This week, several key economic events are scheduled to unfold that could significantly influence global markets. Here’s a rundown of the most noteworthy happenings and their potential impact:
Monday, August 23:
Bank of England Interest Rate Decision: The Bank of England will announce its decision on the interest rate at 12:00 PM BST. Analysts predict a rate hold, but any signs of a shift in monetary policy could cause volatility in the British pound.
Tuesday, August 24:
US Durable Goods Orders: This indicator of business investment is expected to rebound in July, following a disappointing June. A strong reading could boost investor confidence and lift US stocks.
Wednesday, August 25:
Eurozone Consumer Price Index (CPI): The CPI is anticipated to rise in August, possibly indicating inflationary pressures within the Eurozone. This could have implications for the European Central Bank’s monetary policy and the euro.
Thursday, August 26:
US Unemployment Claims: The weekly jobless claims data is a leading indicator of the labor market’s health. A significant deviation from expectations could impact both the US dollar and US stocks.
Friday, August 27:
Japanese Gross Domestic Product (GDP): Japan’s Q2 GDP reading is projected to show modest growth. A better-than-expected number could lead to a rally in the Japanese yen, while a weak result might weigh on it further.
Bonus:
US Personal Consumption Expenditures (PCE): This measure of consumer spending, which is the largest component of GDP, could provide valuable insights into the state of the US economy. A strong showing here could further bolster market sentiment and risk assets.