Weekly Fundamental Outlook: Major Events

By TraderVox.com

Tradervox.com (Dublin) – Last week the dollar dropped against all its peers as Federal Reserve Chairman Ben S. Bernanke announced the third round of quantitative easing. Further, positive reports from Europe boosted the euro and risk related currencies. Here are some of the major events this week expected to shape the market this week.

Tuesday 18

The UK inflation data will be released on this day at 0830hrs. The consumer prices in July advanced to 2.6 percent after a 2.4 percent reading in the previous month. The advance was related to high transportation cost, footwear, and clothing. However, economists are expecting a decline in this report to 2.5 percent. The other major event on this day will be the euro-zone German ZEW Economic Sentiment, which will be released at 0900hrs GMT. This reading declined in August by 5.9 points to its lowest level in 2012 of minus 25.5 points. Economists are expecting an improvement to minus 19.7.

Wednesday 19

There are four major events on this day, the first one being the Japanese Rate Decision. The market expects the bank to give warnings about currency intervention but no change is expected in the BOJ’s monetary policy. US Building Permits and the Existing Home Sales are the other two major events on this day. The US Building Permits at 1230hrs is expected to register a slight decline to 790,000 from the 812,000 registered in July. The US Existing Home Sales report will be released at 1400hrs and is expected to show an improvement to 4.59 million from the 4.47 million realized in July. The New Zealand GDP report will be released at 2245hrs GMT, where a growth rate of 0.4 percent is expected.

Thursday 20

There are two major events from the US on this day –the US Unemployment Claims and US Philly Fed Manufacturing Index. At 1230hrs GMT, the US Unemployment Claims report will be released. Last week’s data showed the highest number of Americans asking for unemployment claims in two months, where it reached a high of 382k. The market is expecting a drop to 370,000 this week. The US Philly Fed Manufacturing Index will be released at 1400hrs GMT where a slight improvement to -4.1 is expected this time. Mario Draghi’s Speech at the European Systemic Risk Board Meeting will be the last major event of the week and it will take place at 1600hrs GMT. The speech is expected to create volatility in the market and economists and investors will be evaluating it for any clues of the next ECB move.

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