The UK election results will continue to dominate market sentiment in the upcoming week. Also on the calendar, the Federal Reserve meeting will attract investors’ attention along with BoE and BoJ meetings.
The French legislative election will be published on Sunday and can add to the political uncertainty that spreads over Europe.
Here are the main economic events of the upcoming week:
Interest Rate Decision from Federal Reserve
Wall Street produced mixed results on Friday and finished the week showing a rather strong backbone under the shadow of political risk events. Last week’s testimony from James Comey appears not to have damaged President Trump terribly, but more hearings will take place in Washington and investors will keep their eyes on the theater which promises to come from Congress and the White House. The Federal Reserve however will grab the trading spotlight. The Fed will release their Federal Funds Rate on Wednesday, and are expected to raise their key interest rate by a quarter of a point. And if the Fed pushes forth with the expected hike, its Monetary Policy Summary published at the same time will become crucial regarding its outlook. Traders will continue to be challenged via forex and CFD’s this week via speculation, due to the coming pronouncements from the U.S central bank.
Industrial Production Data from China
Asian equity markets have shown resilience. The Nikkei and Shanghai Shenzhen Indexes entered the weekend sporting climbs. The Shanghai Shenzhen composite is showing a gain of over 5% the past month. Industrial Production numbers will come from China early on Wednesday, and recent economic data from the nation has been disappointing. Japan will release Core Machinery Orders statistics early on Monday, and the Bank of Japan will issue their Policy Rate late this week. Japanese data has been lackluster too. However risk sentiment in Asia has continued to produce strong results via equities. The Yen is above the 110.00 mark against the U.S Dollar. But the Japanese currency has been range trading within a stronger realm the past couple of weeks and should be given attention.
France Vote Will Influence Euro
The French Legislative election is underway and the results for the first round of voting will be known later tonight and early tomorrow. The outcome from France could influence the Euro early this week. Meanwhile in the U.K, Thursday’s election results are still causing ramifications. However, it appears the Conservatives are nearing a governing agreement via a deal with the Democratic Unionist Party of Northern Ireland. The Euro will start the week near 1.12 against the U.S Dollar, and the Pound – which has been weakened – is above the 1.27 mark. Inflation numbers will come early this week from the U.K, and the Bank of England will release their Monetary Policy Summary on Thursday. The Footsie and DAX gained on Friday and European equity markets will prove intriguing this week.
U.S Central Bank Will Impact Gold
Crude Oil suffered further declines last week and will start trading on Monday near 46.00 U.S Dollars a barrel. The energy sector continues to be speculative and traders need to remain vigilant, particularly if reversals are sought. Gold declined as the week ended and the 1270.00 U.S Dollars an ounce level will watched intently. The coming decision from the U.S central bank will impact the precious metal this week with volatility.
French Vote Today
The week begins early with the French Legislative Election taking place today. On Monday at 18:00 GMT the U.S Federal Budget Balance numbers will be published. The U.K releases its Consumer Price Index on Tuesday at 8:30 GMT. And on Wednesday the crucial Federal Funds Rate decision will be issued in the U.S at 18:00 GMT. Thursday will see the Bank of England issue their Monetary Policy Summary at 11:00 GMT. And on Friday the U.S Building Permits figures will be brought forth at 12:30 GMT.
Yaron Mazor is a senior analyst at SuperTraderTV.
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