Chair Powell speech and EU PMI data headline the economic docket
During the upcoming trading week market participants look to a scheduled speech and testimony from Federal Reserve Chair Jerome Powell, and the release of key Manufacturing PMI data from the EU economy. Federal Resereve Chair Powell will deliver a scheduled speech this week, marking the US central banks first address to market participants since the FOMC rate decision. Chair Powell is also set to testify before US Congress this week.
The release of European PMI data will also be closely watched by financial markets, with most economists expecting manufacturing activity in the eurozone to have expanded during the month of September.
Other highlights on the economic calendar include interest rate decisions from the Reserve Bank of New Zealand, and Swiss National Bank. The US economy also release important Durable Goods, Jobs, Manufacturing, Services, and Housing numbers this week.
Monday 21st September, US Chicago Fed National Activity
The Chicago Fed National Activity Index is released by the Chicago Federal Reserve Bank that tracks economic activity in the 7th district. The index is a weighted average of eight-five indicators based on economic data covering production and income, employment, personal consumption, housing, manufacturing, trade sales, inventories, and orders. The index is considered a key indicator of US economic growth and identifying potential inflation.
- The USDJPY pair is bearish while trading below the 105.80 level, further losses towards the 103.50 and 101.50 levels remains possible.
- If the USDJPY pair trades above the 105.80 level, buyers are likely to test the 106.60 and 107.00 resistance levels.
Tuesday 22nd September, EU Consumer Confidence
EU Consumer Confidence is released by the European Commission, and is considered a leading index that measures the level of consumer confidence and economic activity in Europe. A high level of consumer confidence stimulates economic expansion, while a low level drives to economic downturn. A high reading is generally seen as being positive for the euro currency, while a low reading is seen as negative for the euro currency.
- The EURUSD pair is only bearish while trading below the 1.1750 level, key support is found at the 1.1730 and 1.1680 levels.
- If the EURUSD pair trades above the 1.1750 level, buyers will likely test towards the 1.1900 and 1.2100 resistance levels.
Wednesday 23rd September, RBNZ Rate Decision
The Reserve Bank of New Zealand rate recision is the market interest rate on overnight funds, with the RBNZ standing as the central monetary authority for the New Zealand economy. The Reserve Bank of New Zealand is widely expected to keep interest rates on hold at this meeting, following rate cuts earlier this year. RBNZ policymakers are also tipped to strike an overall dovish tone towards the domestic economy and monetary policy.
- The NZDUSD pair is bearish while trading below the 0.6600 level, key support is found at the 0.6500 and 0.6380 levels.
- If the NZDUSD pair moves above the 0.6600 level, buyers may test towards the 0.6850 and 0.7000 levels.
Thursday 24th September, US Initial Jobless Claims
Initial Jobless Claims are released by the US Department of Labor is a measure of the number of people filing first-time claims for state unemployment insurance. In other words, it provides a measure of strength in the labor market. A larger than expected number indicates weakness in this market which influences the strength and direction of the US economy. Generally speaking, a decreasing number should be taken as positive or bullish for the US dollar.
- The USDCAD pair is only bullish while trading above the 1.3200 level, further gains towards 1.3300 and 1.3400 levels remain likely.
- If the USDCAD pair trades below the 1.3200 level, sellers may test towards the 1.3150 and 1.3000 support levels.
Friday 25th September, US Durable Goods Orders
US Durable Goods Orders is a key government report released by the US Census Bureau which measures consumer spending on long-term purchases and products that are expected to last more than three years. Durable goods are generally sensitive to economic fluctuations, because durable products usually involve large investments. If consumers become skeptical about economic conditions it may cause sales of durable goods to be among the first to be affected, as consumers may delay purchases of durable items such as cars and televisions.
- The GBPUSD pair is bearish while trading below the 1.2955 level, further losses towards the 1.2830 and 1.2700 levels remains possible.
- If the GBPUSD pair trades above the 1.2955 level, buyers are likely to test the 1.3000 and 1.3150 resistance levels.