Get ready for an action-packed week ahead as a flurry of key economic indicators are set to be released, potentially impacting global markets and investor sentiment.
Keep a close eye on these important releases, including the S&P Global Composite PMI, US Core Durable Goods Orders, US Q/Q GDP, the BoJ Interest Rate Decision, and the US Core PCE Price Index.
🇪🇺 S&P Global Composite PMI — April 23, at 11:00 GMT+3
This key economic indicator is compiled from surveys of purchasing managers in the manufacturing and services sectors of over 40 economies worldwide. A reading above 50 indicates expansion, while a reading below 50 indicates contraction. The index is closely watched by businesses and investors as it can provide insights into the health of the global economy.
Analysts expect the PMI to edge higher to 50.6 from 50.3 in March. This would indicate that the Europe economy is continuing to expand, albeit at a slower pace.
The release of the S&P Global Composite PMI could have a significant impact on the EUR/USD currency pair. If the PMI comes in stronger than expected, it could boost risk sentiment and support the euro. Conversely, a weaker-than-expected reading could weigh on the euro.
🇺🇸 Core Durable Goods Orders m/m — April 24, at 15:30 GMT+3
This closely watched metric gauges the change in the total value of new orders placed with U.S. manufacturers for long-lasting goods, excluding transportation items.
Analysts forecast a reading of 0.4% for March, slightly lower than the previous month’s 0.5%. A positive reading indicates expanding business activity, while a negative reading suggests contraction.
The release of US Core Durable Goods Orders could have a significant impact on the US Dollar (USD). A stronger-than-expected reading could boost the USD, while a weaker-than-expected reading could weigh on the currency. Additionally, the data could influence US stock market indexes, including the Dow Jones Industrial Average ($US30), S&P 500 ($SPX500), and Nasdaq Composite ($NAS100).
🇺🇸 GDP q/q — April 25, at 15:30 GMT+3
This crucial economic indicator measures the change in the value of all goods and services produced within the US economy over a three-month period.
Analysts forecast a reading of 3.1% for Q1 2024, slightly lower than the previous quarter’s 3.4%. A positive reading indicates economic growth, while a negative reading suggests contraction.
The release of US Q/Q GDP could have a significant impact on the global financial markets. A stronger-than-expected reading could boost risk sentiment and support the US Dollar and riskier assets like stocks. Conversely, a weaker-than-expected reading could dampen risk appetite and weigh on the US Dollar and riskier assets.
Gold, in particular, has shown sensitivity to economic data releases, including GDP. As a safe-haven asset, gold often moves inversely to the US Dollar. A strong economy and rising US Dollar could put downward pressure on gold prices, while a weak economy and falling US Dollar could support gold prices.
🇯🇵 BoJ Interest Rate Decision — April 26, at 5:30 GMT+3
This highly anticipated event will reveal whether the central bank will keep interest rates around zero or make adjustments to its policy stance.
In its previous meeting in March, the BoJ voted to raise its short-term interest rates to 0% to 0.1% from -0.1%. This marked a significant shift in policy, as the BoJ had maintained a negative interest rate policy for nearly seven years. The decision was driven by concerns about rising inflation and the need to normalize monetary policy.
The upcoming BoJ interest rate decision is likely to be closely scrutinized by investors and traders around the world. Any change in policy could have a significant impact on the Japanese Yen (JPY) and global financial markets.
🇺🇸 Core PCE Price Index m/m — April 26, at 15:30 GMT+3
This key economic indicator gauges the change in personal consumption expenditures excluding food and energy, providing a crucial insight into inflation trends within the US economy.
Analysts forecast a reading of 0.2% for March, a significant decline from the previous month’s 0.5%. A lower reading indicates moderating inflation, while a higher reading suggests persistent inflationary pressures. Investors and policymakers closely monitor the PCE Price Index to assess the effectiveness of monetary policy and the overall health of the economy.
The release of the US Core PCE Price Index m/m could have a significant impact on financial markets. A lower-than-expected reading could boost risk sentiment and support the US Dollar, while a higher-than-expected reading could dampen risk appetite and weigh on the US Dollar. Additionally, the data could influence interest rate expectations and bond prices.
That’s it for this week! 👋
