05/29/2023 05:12:54 ET
Today is Memorial Day in the United States and most European banks are also closed. As a result, liquidity in the financial markets is low and little or no volatility is to be expected.
However, the coming week is packed with major economic and financial events that will move the markets. Here are four events every trader should be aware of this week:
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Australian inflation
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ISM manufacturing
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European inflation
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Payroll accounting outside of agriculture
Australian CPI
Global inflation is still well above central bank targets. Australia is no different, and this week the consumer price index (CPI) is expected to rise to 6.4% from a year earlier, from 6.3%.
The Australian dollar was weak in May but higher inflationary pressures should strengthen the case for a more hawkish RBA statement at the next meeting. Should inflation surprise on the upside, the local currency should benefit.
ISM manufacturing
All eyes will be on Thursday’s ISM manufacturing data from the US. The manufacturing sector is shrinking, but the labor market remains robust.
If we see a rebound towards the 50 level, optimism about the US economy’s ability to avoid a recession will increase.
European CPI
In contrast to Australian inflation, European inflation is expected to fall to 6.3% from the previous 7%. The data expected on Thursday will have a huge impact on the upcoming ECB meeting and thus move the euro.
Payroll accounting outside of agriculture
With next Friday being the first of the month, traders know this is the time for the US jobs report release. The US economy is expected to have added 189k jobs in May and the unemployment rate to have risen to 3.5%.
The post “4 Events Impacting Financial Markets This Week and Why Traders Should Care” appeared first on Invezz.
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