Trading News to Watch Next Week (24-28 December 2018)

‘Tis the season of joy and celebration! And as the families all over the world gather ‘round the fireplace with a glass of hot cocoa, the markets have naturally taken a back seat on everyone’s minds…

Only not quite. Check out our final market report for this year to see which economic events you might want to keep on your radar and make the most of your 2018 trading efforts. Ready? Let’s go!

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Tuesday, 25 December 2018

 

JPY – SPPI y/y – 12:50 am (Low Impact)

Tracks the change in the price of services purchased by corporations. The metric acts as a leading indicator of consumer inflation—when corporations pay more for services the higher costs are usually passed on to the consumer.

An actual price change of 1.3% for the previous month slightly outperformed a 1.2% forecast.

Wednesday, 26 December 2018

 

JPY – Monetary Policy Meeting Minutes – 12:50 am (Low Impact)

The report contains a detailed record of the BOJ Policy Board’s meeting, providing in-depth insights into the economic conditions that influenced their decision on where to set interest rates.

JPY – BOJ Core CPI y/y – 6:00 am (Low Impact)

Shows the change in the price of goods and services purchased by consumers, excluding food and energy. Food and energy prices account for about a quarter of CPI, but they tend to be very volatile and distort the underlying trend.

Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate.

An actual price change of 0.6% for the previous month slightly outperformed a 0.5% forecast.

USD – Richmond Manufacturing Index – 4:00 pm (Low Impact)

Tracks a level of a composite index based on a survey of about 100 manufacturers in the Richmond area which asks respondents to rate the relative level of business conditions including shipments, new orders, and employment.

Above 0 indicates improving conditions, while below that indicates worsening conditions. An actual index value of 14 for the previous month failed to reach a forecast of 16.

Thursday, 27 December 2018

 

JPY – Housing Starts y/y – 6:00 am (Low Impact)

Tracks the change in the number of new residential buildings that began construction. The report acts as a leading indicator of economic health because building construction produces a wide-reaching ripple effect.

For example, jobs are created for the construction workers, subcontractors and inspectors are hired, and various construction services are purchased by the builder.

An actual value of 0.3% for the previous month fell short of reaching a 0.4% forecast.

USD – Unemployment Claims – 2:30 pm (Low Impact)

Shows the the number of individuals who filed for unemployment insurance for the first time during the past week. Although it’s generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions.

An actual unemployment claim count of 214K for the previous week successfully came ahead of a 216K forecast.

USD – CB Consumer Confidence – 4:00 pm (High Impact)

CB-consumer-confidence-report

Source: DF Markets

Tracks the level of a composite index based on a survey of about 5 000 households which asks respondents to rate the relative level of current and future economic conditions including labor availability, business conditions, and overall economic situation.

Friday, 28 December 2018

 

JPY – Unemployment Rate – 12:30 am (Low Impact)

Tracks the percentage of the total workforce that is unemployed and actively seeking employment during the previous month.

An actual value of 2.4% for the previous month slightly underperformed vs. a 2.3% forecast.

EUR – German Prelim CPI m/m – All Day (Medium Impact)

Tracks the change in the price of goods and services purchased by consumers. Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate.

An actual price change of 0.1% for the previous month slightly underperformed vs. a 0.2% forecast.

CHF – KOF Economic Barometer – 9:00 am (Medium Impact)

Tracks the level of a composite index based on 219 economic indicators. This index is designed to predict the direction of the economy over the next 6 months.

The index includes a combined reading of 219 economic indicators related to banking confidence, production, new orders, consumer confidence, exchange rate, money supply, interest rate spreads, stock market prices, and housing.

An actual value of 99.1 for the previous month comes just shy of reaching a 99.6 forecast.

USD – Chicago PMI – 3:45 pm (Medium Impact)

Tracks the level of a diffusion index based on a survey of around 200 purchasing managers in Chicago which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.

The PMI acts as the leading indicator of economic health—businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy.

Above 50.0 indicates expansion, while below that indicates contraction. An actual index value of 66.4 for the previous month crushed a 58.6 forecast.

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Missed our previous report? Visit us here to catch up on last week’s top news. While you’re at it, don’t forget to also visit our Economic Calendar for extra details regarding each event.

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