Trading News to Watch Next Week (28 January-1 February 2019)

Source: DF Markets

In this report, we have 19 economic events that we’re sure will draw your attention. Without further ado, here are the top trading news you need to be aware of heading into next week.

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Monday, January 28

 

EUR – ECB President Draghi Speaks – 3:00 pm (High Impact)

Euro symbol with trading charts and skyscrapers as background

Source: DF Markets

Due to testify before the European Parliament, in Brussels. As head of the ECB, which controls short term interest rates, Mario Draghi has more influence over the euro’s value than any other person. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy.

NZD – Trade Balance – 10:45 pm (Medium Impact)

Tracks the difference in value between imported and exported goods during the reported month. Export demand and currency demand are directly linked because foreigners must buy the domestic currency to pay for the nation’s exports.

A positive number indicates that more goods were exported than imported. A value of -861M for the previous month crushed a -880M forecast.

Tuesday, January 29

 

EUR – Spanish Unemployment Rate – 9:00 am (Medium Impact)

Monitors the percentage of total workforce that is unemployed and actively seeking employment during the previous quarter. 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 unemployment rate of 14.6% for the previous quarter slightly came ahead of a 14.9% forecast.

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

Shows 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.

Wednesday, January 30

 

AUD – CPI q/q – 1:30 am (High Impact)

Tracks the change in the price of goods and services purchased by consumers. The data is derived by sampling the average price of various goods and services and then comparing them to the previous sampling.

A price change of 0.4% for the previous quarter came slightly below a 0.5% forecast.

AUD – Trimmed Mean CPI q/q – 1:30 am (High Impact)

Monitors the change in the price of goods and services purchased by consumers, excluding the most volatile 30% of items. The data represents the underlying inflation trend through component weighting and anomaly exclusion.

A price change of 0.4% for the previous quarter remained consistent with the forecast.

USD – ADP Non-Farm Employment Change – 2:15 pm (Medium Impact)

Tracks the estimated change in the number of employed people during the previous month, excluding the farming industry and government. This data provides an early look at employment growth, usually 2 days ahead of the government-released employment data that it’s designed to mimic.

An actual employment change of 271K for the previous month crushed a 179K forecast.

USD – Federal Funds Rate – 8:00 pm (High Impact)

Denotes the interest rate at which depository institutions lend balances held at the Federal Reserve to other depository institutions overnight. FOMC members vote on where to set the target rate. The individual votes are published in the FOMC statement.

During the last evaluation the interest rate was left at <2.50%, remaining consistent with the forecast.

USD – FOMC Statement – 8:00 pm (High Impact)

FOMC logo on a US flag background

Source: DF Markets

The statement is the primary tool of the Federal Open Market Committee which it uses to communicate with investors about monetary policy. It contains the outcome of their vote on interest rates and other policy measures, along with commentary about the economic conditions that influenced their votes. Most importantly, it discusses the economic outlook and offers clues on the outcome of future votes.

USD – FOMC Press Conference – 8:30 pm (High Impact)

The press conference is about an hour long and has 2 parts. First, a prepared statement is read, then the conference is open to press questions. It is among the primary methods the Fed uses to communicate with investors regarding monetary policy.

Thursday, January 31

 

CNY – Manufacturing PMI – 2:00 am (Medium Impact

Tracks the level of a diffusion index based on a survey of 3 000 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.

Above 50.0 indicates industry expansion, below indicates contraction. An actual diffusion index of 49.4 for the previous month came just short of reaching a 50.0 forecast.

EUR – Spanish Flash GDP q/q – 11:00 am (Medium Impact)

Shows the change in the inflation-adjusted value of all goods and services produced by the economy. There are 2 versions of GDP released about 20 days apart—Flash and Final. The Flash release is the earliest and thus tends to have the most impact.

A value change of 0.6% for the previous quarter remained consistent with the forecast.

CAD – GDP m/m – 2:30 pm (High Impact)

Shows the change in the inflation-adjusted value of all goods and services produced by the economy. The metric acts as the broadest measure of economic activity and the primary gauge of the economy’s health.

A value change of 0.3% for the previous month slightly outperformed a 0.2% forecast.

USD – Personal Spending m/m – 2:30 pm (Medium Impact)

Shows the change in the inflation-adjusted value of all expenditures by consumers. Consumer spending accounts for a majority of overall economic activity. It’s one of the most important gauges of economic health due to the vast ripple effect consumer buying creates in the economy.

A value change of 0.4% for the previous month slightly outperformed a 0.3% forecast.

Friday, February 1

 

GBP – Manufacturing PMI – 10:30 am (Medium Impact)

Shows the level of a diffusion index based on a survey of about 600 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.

Above 50.0 indicates industry expansion, below indicates contraction. An actual diffusion index of 54.2 for the previous month significantly outperformed a 52.5 forecast.

USD – Average Hourly Earnings m/m – 2:30 pm (High Impact)

Tracks the change in the price businesses pay for labor, excluding the farming industry. The metric acts as a leading indicator of consumer inflation—when businesses pay more for labor the higher costs are usually passed on to the consumer.

An actual price change of 0.4% for the previous month slightly topped a 0.3% forecast.

USD – Non-Farm Employment Change – 2:30 pm (High Impact)

Monitors the change in the number of employed people during the previous month, excluding the farming industry. Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity.

An actual employment change of 312K for the previous month crushed a 179K forecast.

USD – Unemployment Rate – 2:30 pm (High Impact)

Tracks the percentage of the total workforce that is unemployed and actively seeking employment during the previous month. 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 rate of 3.9% for the previous month underperformed vs. a 3.7% forecast.

USD – ISM Manufacturing PMI – 4:00 pm (High Impact)

Shows the level of a diffusion index based on a survey of about 400 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.

Above 50.0 indicates industry expansion, while below that indicates contraction. An actual diffusion index of 54.1 for the previous month underperformed vs. a 57.7 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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