Trader’s calendar for February June 17 – 19:  US Fed poised for rhetoric revision

Trader’s calendar for February June 17 – 19: US Fed poised for rhetoric revision


Market sentiment this trading week depends
on both macroeconomic data and political events. The main political drivers have been Donald
Trump with his criticism of the Federal Reserve, new developments in the trade conflict between
the US and China, Brexit-related jitters in the British government, and an abnormal public
debt in Italy. Next week, traders await a large number of
market-moving reports and events. Let’s watch a video calendar on InstaForex
TV channel to find out these events. On Tuesday, the economic calendar will be
loaded with statistics which matter a lot to traders working with the euro/dollar pair. The ZEW Center for European Economic Research
is due to present its survey on business sentiment in Germany. The indicator for the largest eurozone’s
economy is expected to rebound and hit a one-year high. This will be bullish for the single European
currency. A rush to buy the euro could be subdued by
a publication of the revised consumer price index for the eurozone. The final figure is believed to confirm the
flash estimate. Preliminary data suggested a slowdown in headline
inflation to 1.2%. If the forecast comes true, the market is
likely to neglect the survey as the fact of a slowdown in inflation has been already priced
in by market participants. Besides, traders speculating with the pound
sterling will show a muted response to an inflation report from the UK. On Wednesday, the UK Office for National Statistics
will report on a change in consumer prices in May. Analysts project an uptick to 2.2%. On Wednesday, Canada will be the last to provide
its inflation data. The consensus suggests that headline inflation
retained a pace of growth in May. So, a CPI could have risen by 0.4% month-on-month
having accelerated by 2.0% in annual terms. Nevertheless, some experts think that flat
readings in inflation signal a downturn in domestic economic conditions. In fact, investors have already grasped the
same signal for the US economy. On Wednesday, the Federal Reserve is holding
a regular policy meeting. Fed’s Chairman Jerome Powell will unveil
policy decisions at the press conference to follow. Earlier this week, the US central bank was
again targeted by President Donald Trump. He accused the Federal Reserve of wrong decisions
on interest rates which failed to create decent economic conditions. Thus, the market is alert to every word of
the central bank’s leader. Both the President and recent economic metrics
appeal to the regulator to ease monetary policy. So, any hint that the central bank is ready
for easing will trigger a wave of sell-offs of the US dollar. Apart from the above-said events, it would
be a good idea for traders to take notice of other reports. On Tuesday, traders will get to know the minutes
of the policy meeting of the Reserve Bank of Australia which ended with a decision to
cut the cash rate. Germany will release a producer price index. Russia is due to report on economic growth. The US will provide a series of data on the
construction sector. On Wednesday morning, traders are going to
absorb data on trade balance in the eurozone. During the European trade, the Confederation
for British Industry will unveil data on factory orders. Later in the North American trade, the US
Energy Department will report on a weekly change in domestic oil inventories.

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