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The five most important events that will move the markets during the week
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Loading...Fed chairman Janet Yellen's fresh comments will take on the agenda this week, as investors are looking for signs of a further rise in interest rates. Investors will also closely monitor the employment report, which will be published on Friday.
During the week, we will also witness Mario Draghi's statement, where he will give more information on when the ECB will begin to reduce the program of quantitative easing.
In the United Kingdom, traders will focus on a trio of activity reports in the manufacturing, construction and services sectors to find the extra effects of the Brexit decision on the economy.
We also expect from Australia a decision on RBA basic interest rate.
Here are the five major economic events that will impact the market
1. Janet Yellen's speech
After Yallen signaled that the Fed intends to raise interest once more, the bank's chairman will deliver a speech on Wednesday, where investors will expect more information on how the Fed intends to ignore weak inflation and move on to raising the key rate. Currently, the interest rate pick-up in December has risen to 70%
2. The US Employment Report
Currently, the forecast for new jobs in the United States is only 100,000 in September, as the impact of Harvey and Irma has begun to exert an increasing influence on many of the country's economic performance. The unemployment forecast remains stable, with expectations for it to be at 4.4%. If we see higher data than expected, it will show that the economy remains strong despite the damage caused by the two hurricanes. We expect market caution ahead of the report and increased volatility after data release.
3. The ECB report and Mario Draghi's speech
Investors will highlight the ECB's report on the September 7 meeting, and expect a statement from Draghi on Wednesday. Dearly pointed out that it is possible to start cutting the QE program back in October, and traders will expect more information about how it works. On the other hand, on Sunday, Catalunya voted in a referendum that is still unclear, and this has had a negative impact on the euro.
4. UK PMI services, manufacturing and construction data
On Monday, UK will release production activity data, followed by a construction sector report on Tuesday and the services sector on Wednesday. Last week, UK posted the weakest GDP growth since 2013, a direct result of Brexit's decision.
5. The Reserve Bank of Australia's Basic Interest Rate Decision
Most economists expect the central bank to maintain unchanged interest rates at current levels of 1.5 percent and maintain its neutral policy position as it balances the risk of further lending to the property market in the country and inflation.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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