This week may be full of volatility for the currency market. Better watch out for these Manufacturing and services PMIs . If you are thinking of taking trade on any economic event then you need to read this blog.
Major Economic Events:
Manufacturing and services PMIs – Global growth worries can escalate this week as major economies publish their August flash PMI reports.
Australia will get the ball rolling today at 11:00 pm GMT with potentially a weaker manufacturing (from 55.7 to 55.0) but stronger services (from 50.9 to 51.0) PMIs. Japan will follow on Tuesday at 12:30 am GMT with a similar dip in manufacturing (from 52.1 to 51.9) but stronger services (from 50.3 to 50.5) PMIs.
August 23 Eurozone PMIs will likely get more attention, and unlike in Australia and Japan, markets see further deterioration for both manufacturing and services activities
France (7:15 am GMT) could see manufacturing dip from 49.5 to 48.3 and services drop from 53.2 to 52.1. Germany (7:30 am GMT) may report similar declines in manufacturing (49.3 to 47.8) and services (49.7 to 49.3) indices.
Eurozone PMIs (8:00 am GMT) will also be closely looked at after the composite PMI contracted (49.9) in July. Manufacturing (49.8 to 48.6) and services (51.2 to 50.8) may see more slowdowns while the composite PMI dips further into contraction territory.
Meanwhile, the U.S. PMIs (Aug. 23, 1:45 pm GMT), which is expected to report weaker manufacturing (52.2 to 51.1) but improving services (47.3 to 48.0) indices.
NZ quarterly retail sales (Aug. 24, 10:45 pm GMT) – Retail activity in New Zealand dropped by 0.5% in Q1 after a downwardly revised 8.6% growth in Q4. Traders are expecting a 0.4% gain this time, which could still drag annual growth from 2.3% to 1.1%.
Better-than-expected numbers might push inflation even higher and confirm the Reserve Bank of New Zealand (RBNZ)’s estimates of a 4.00% later this year or early next year.
U.S. preliminary GDP (Aug. 25, 12:30 pm GMT) – Upside revisions to consumer spending numbers are expected to pull Uncle Sam’s Q2 GDP from -0.9% to -0.8%. Small improvement but still a technical recession tbh.