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The markets head into the final week of the month and the quarter. With Friday, June 30, marking the end of the quarter, which also coincides with the Triple Witching event, the markets could turn choppy.
A busy week stands out for the US dollar, while in the eurozone the flash inflation estimates will be key. Regional inflation estimates will also be released which will give a clearer picture of the eurozone’s consumer prices data.
This week will also see the GDP numbers coming out from the UK, US, and Canada. Here’s a brief outlook on the key market events to watch out for in the forex markets this week.
US: Durable goods orders, Final GDP, and Core PCE
The week ahead from the United States will see key economic indicators coming out that could potentially sway the market expectations from the Fed. The week starts off with Monday’s durable goods orders.
According to economists polled, core durable goods orders are expected to rise 0.4% on a month over month basis. This would potentially offset the 0.5% decline posted in the previous month. The headline durable goods orders are however expected to contract 0.7%, extending the 0.8% declines from the previous month.
Later in the week, the first quarter-final gross domestic product (GDP) data will be coming out. The final revision is expected to show no major changes after GDP was revised from 0.9% initially to 1.2% as of the second revision.
The major data point for market participants and the central bank officials will be the personal consumption expenditure or PCE data. Headline PCE is expected to rise 2% on the quarter, slightly down from 2.1% that was registered previously. Personal consumption is expected to rise 0.6%, same as the previous quarter.
Eurozone: Inflation estimates
The markets will get a glimpse of how consumer prices behaved in June. In May, data from Eurostat confirmed that headline inflation rose 1.4% and core inflation rose 0.9%. This was lower than the previous month’s reading.
