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- ECB, financial reports and US GDP on investor focus next week
ECB, financial reports and US GDP on investor focus next week
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Loading...As far as the economic calendar is concerned, there is only one major event during the next week, that traders will expect - ECB interest rate decision on Thursday. The probability of raising interest rates is minimal and therefore investors will turn their attention to the ECB press conference at 3:30 pm. It is expected that Mario Draghi will confirm the way that central bank has taken over, as well as committing itself to specific dates and deadlines for the implementation of the plans. We expect Draghi to confirm that the ECB is going to liquidate QE, and raising the base interest rate in 2019. Given the weakening of the USD, caused by Trump's comments that the Fed is rushing to raise interest rates and he will not agree, I expect the EUR/USD to continue its growth and testing the area around 1.1850.
Traders revaluated the Fed's policy - the USD remains under pressure
Looking at the stock markets, next week is expected to be one of the most volatile, as top US companies will present their corporate reports. Among the biggest names are Alphabet, GM, Coca-Cola, Facebook, Boeing, Visa, Amazon, Intel, Twitter and others. Companies are likely to show how much they have been affected by the tax reform and, above all, the possibility of returning profits from abroad. What worries investors is that expectations are again higher and if we see weaker than expected profits, sharp downward movements will not be missed.
The most important week for corporate reports is coming
Rumors from Trump and China about the war on the war seem to be overshadowed by corporate reports and the weak dollar, which currently contributes to an increased risk of appetite. As a result, we are seeing growth not only in the stock market but also in risky currencies such as AUD and NZD. Technically, however, both currencies remain below key levels of resistance against the USD. EUR and GBP. JPY will most likely follow the stock market movements and will move in a backward correlation.
On Friday, we expect US GDP, where again, if we see worse data, USD will likely continue its decline.
Here are the more important data we expect from the big economies next week
Monday
15:30 Canada - Wholesale
17:00 USA - Existing Homes Sales
Tuesday
10:30 Germany - Manufacturing PMI
11:00 Europe - Manufacturing PMI
11:00 Europe - Services PMI
16:45 USA - Manufacturing PMI
16:45 USA - Services PMI
23:30 US - API Crude oil inventories
Wednesday
01:45 New Zealand - Unemployment rate
01:45 New Zealand - Trade Balance
01:45 New Zealand - New Jobs
04:30 Australia - CPI
11:00 Germany - IFO Business Climate
17:00 USA - Selling New Homes
17:30 US - Crude oil inventories
Thursday
14:45 Eurozone - Interest rate decision
15:30 US - Durable goods orders
15:30 Eurozone - ECB Press conference
Friday
02:30 Japan - CPI
15:30 US - GDP
20:00 USA - Baker Hughes Oil rig count
Trader Petar Milanov Read more:
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