Your Weekly Fundamental View (21-25 August)

Augusts 21, 2017 11:00


Need to Know

The upcoming trading week is expecting several interesting economic data releases, such as the ZEW Indicator, UK GDP figures, the inflation rate from Japan, and new home sales from the U.S. The most important event is perhaps the economic symposium held in Jackson Hole, Wyoming, USA, on Saturday (see the last event on the list below).

Coming Up

German ZEW Economic Sentiment Index, 22 August

The ZEW Economic Sentiment Index is a based on surveys with approximately 275 German institutional investors and analysts. The participants provide their economic outlook for Germany in the next six months.

Why should you care? Changes in the sentiment of the leading investors and analysts could be an early signal of economic optimism or pessimism. The previous figure is 17.5, whereas the forecasted figure stands at 15 (*). Any number above 0 indicates optimism.

German Markit Manufacturing PMI Flash on Wednesday, 23 August

This is an index based on the purchasing managers in the manufacturing industry. Around the same time, there will also be announcements of the German services PMI, the French manufacturing and services PMI, and the Eurozone manufacturing and services PMI.

Why should you care? An index level above 50.0 indicates industry improvement, whereas a level below 50 translates into decline. With the previous figure at 58.1, the current forecast promises 57.8 (*).

Eurozone Consumer Confidence Flash on Wednesday, 23 August

This survey is based on 2,300 Eurozone consumers and their confidence in their finances, job market, inflation, and other similar areas.

Why should you care? The previous figure is -1.7, with the forecasted figure standing at -1.9 (*). Any number above 0 indicates optimism, below 0, pessimism.

US New Home Sales on Wednesday, 23 August

The figure shows how many homes were sold in the previous month, but shown as an annual number. A growth in sales generally indicates a healthier economy.

Why should you care? Consumer spending is an important indicator of the economic performance. The previous monthly home sales are 610k, and the current forecast is identical, 610k (*).

Great Britain GDP Growth Rate on Thursday, 24 August

The Gross Domestic Product (GDP) indicates the total value of goods and services produced by the economy. It's a broad measurement of the total economic activity and overall economic health of the UK.

Why should you care? A rising GDP indicates an improvement in the economy, whereas a decline signifies the opposite. The previous quarterly GDP rate is 0.2%, with the current forecast being 0.3% (*). The previous yearly figure is 0.2%, and the current forecast is 0.3% as well (*).

US Existing Home Sales on Thursday, 24 August

The statistics show how many residential properties were sold in the previous month. This annualised figure does not include new construction projects.

Why should you care? The previous figure is 5.52 million, with the current forecast being 5.57 million (*).

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Source: US existing home sales from 2012 to 2017

Japan Inflation Rate on Friday, 25 August

The inflation rate indicates price changes that consumers pay for all goods and services in the economy.

Why should you care? Inflation levels are monitored by Central Banks because they are a critical component of any interest rate change. The previous figure for the inflation rate is 0.4% (*).

Jackson Hole Economic Policy Symposium, 26 August

This yearly event brings together central bankers, academics, and people from the financial industry. The meetings are closed to the press, although the participants do make time to talk to the press during the day. The event includes speeches from central bankers and other officials.

Why should you care? Attendees often provide comments and interviews to the press, which might create market movement.

(*) Admiral Markets – Forex Calendar

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