Key Economic Announcements for week 48
Q4 is now on the way. Here is a quick round-up of the economic announcements to look out for this week along with an overview of GBP/USD and GBP/EUR.
These high-importance announcements will potentially set the tone for currency movements on the data released.
Key Announcements
November 28th
USA - 15:00 - CB Consumer Confidence
CB Consumer Confidence is an index that measures the level of consumer confidence in economic activity. It is based on a monthly survey of households that asks about their attitudes and buying intentions, with data available by age, income and region. It is a leading indicator as it can predict consumer spending which plays a major role in overall economic activity. Higher readings point to higher consumer optimism.
Previous 102.6 Forecast 101
November 29th
USA - 13:30 - GDP Grow Rate QoQ 2nd
The GDP growth rate is a measure of how rapidly the economy is growing or shrinking. It compares the economic output of a country, measured by GDP, in the most recent quarter to the previous quarter. The GDP of a country can increase when it sells more goods and services to foreign countries than it buys from them, resulting in a trade surplus.
Previous 2.1% Forecast 5%
November 30th
USA - 13:30 - Core PCE Price Index YoY October
The Core Personal Consumption Expenditure Price Index provides a measure of the prices paid by people for domestic purchases of goods and services, excluding the prices of food and energy. The core PCE is the Fed's preferred inflation measure. The central bank has a 2 percent target.
Previous 3.7% Forecast 3.5%
USA - PCE Price Index YoY October
The Personal Consumption Expenditure Price Index provides a measure of the prices paid for domestic purchases of goods and services. While the Consumer Price Index assumes a fixed basket of goods and uses expenditure weights that do not change over time for several years. The Personal Consumption Expenditure Price Index uses a chain index and resorts on expenditure data from the current period and the preceding period (known as Fisher Price Index).
Previous 3.4% Forecast 3.1%
December 1st
Switzerland - 08:00 - GDP Growth Rate YoY (Q3)
Previous 0.5%
USA - 15:00 - ISM Manufacturing PMI (Nov)
The Manufacturing ISM Report On Business is based on data compiled from purchasing and supply executives nationwide. Survey responses reflect the change, if any in the current month compared to the previous month. For each of the indicators measured (New Orders, Backlog of Orders, New Export Orders, Imports, Production, Supplier Deliveries, Inventories, Customers' Inventories, Employment and Prices). The report shows the percentage reporting each response, the net difference between the number of responses in the positive economic direction and the negative economic direction and the diffusion index. A PMI reading above 50 per cent indicates that the manufacturing economy is generally expanding; below 50 per cent indicates that it is generally declining.
Previous 46.7 Forecast 47.6
USA - 16:00 - Fed Chair Powell Speech
In the United States, the authority to set interest rates is divided between the Board of Governors of the Federal Reserve (Board) and the Federal Open Market Committee (FOMC). The Board decides on changes in discount rates after recommendations submitted by one or more of the regional Federal Reserve Banks. The FOMC decides on open market operations, including the desired levels of central bank money or the desired federal funds market rate.
GBP/USD
GBP has a gained 4.1% against the dollar so far in November moving from a low of 1.2091 to 1.2608. The trend has broken through resistance levels of 1.2379, 1.2411 and 1.2562. The next level of resistance is 1.2735. With announcements this week of Consumer Confidence, GDP Growth Rate, Core PCE Price Index and Fed Speech this week market movements will most likely be data-driven by these key announcements.
GBP/EUR
GBP EUR has been trading pretty flat over November so far starting the month at 1.1503 and currently at 1.1530 with no significant economic announcements this week from the UK or Euro zone we could see price action continue to range between 1.140 level of support and 1.1528 level of resistance.
Our Thoughts
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