Welcome to the easyMarkets weekly outlook starting this Monday, August 21. We’ll be looking at the week’s key economic events on the financial calendar covering Monday to Thursday. A slow start to the week sees a very heavy news release on Wednesday for the Eurozone, UK and New Zealand. On Thursday, the Jackson Hole Summit begins in the US and rolls into the weekend.
Event: Manufacturing PMI & Services PMI
Date: Wednesday 23 August 2017 at 08:00 GMT
Markets affected: EUR/USD, EUR/GBP
Trending hashtags: #eur, #pmi
The Eurozone will be releasing its preliminary figures for August’s Manufacturing Purchasing Managers Index (PMI) which came in at a healthy 56.6 for the previous month. The release by Markit Economics gives insight into the manufacturing sector for the region which has a large influence in the overall Gross Domestic Product. It’s a strong signifier for the health of the economy and anything over 50 is considered positive for the euro. The Services PMI is also due out at the same time and this gives a summary of sales and employment in the Eurozone. It’s not as important as manufacturing but again, a result over 50 is seen as bullish for the common currency. Last month’s result was 55.4.Â
Event: UK Gross Domestic Product (Q2)
Date: Thursday 24 August 2017 at 08:30 GMT
Markets affected: GBP/USD, EUR/GBP
Trending hashtags: #gbp, #gdp
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In the first quarter of this year, the United Kingdom’s economy grew 2% on an annualised basis – a 0.1% increase on the previous quarter – Q4 2016. However, with Brexit negotiations still weighing on the economy and leading to a reduced sterling, analysts are expecting a contraction in the GDP figure for the second quarter of this year to 1.9% or less.Â
Event: EU Consumer Confidence
Date: Wednesday 23 August 2017 at 14:00 GMT
Markets affected: EUR/USD, EUR/GBP
Trending hashtags: #eur
CPI for Europe decreased last month to -1.7, falling further than June’s figure of -1.3. Economists were worried at the outcome which came in below their forecast of -1.1, and their outlook for the August preliminary figure is for -1.9. This is an important indicator for the European Central Bank and any decisions it makes in regards to its monetary policy.
