TABLE OF CONTENTS:
Last week’s major focus was on the FOMC meeting which fewer hawkish members lessened expectations of a rate hike during the September meeting. This contributed to continued decline in the dollar index along side poor inflation data. This week’s key events will determine the greenback’s fate as Durable goods, CPI, and housing data from the US is released weighing on its downtrend. GDP figures from the US, UK and Switzerland are also due this coming week.
(22 – 26 August 2016)
Below will be the main highlights for the week;
US New Home Sales: Tuesday, 14.00 GMT. This month’s home sales are expected to decline from June’s figure of 0.592M to 0.58M. This expectation is bearish for the greenback and may lead to further decline at the beginning of the week.
US Existing Home Sales: Wednesday, 14.00 GMT. Existing home sales are also expected to decline this month from a previous figure of 5.57M to 5.53M. Though New home sales may impact the dollar more than this figure; it will also have its own effect adding to the bearish look of the dollar.
Jackson Hole Symposium: Thursday, 00.00 GMT. This event is held annually by the Federal Reserve Bank of Kansas City. This week’s theme; ‘Designing Resilient Monetary Policy Frameworks for the Future.’
US Initial Jobless Claims: Thursday, 12.30 GMT. This week’s initial jobless claims are expected to rise from a previous figure of 262K to 265K. A rising figure is bearish fuelling further loss in the dollar index. Last week’s continuing jobless claims were 2.175M.
U.S Durable Goods: Thursday, 12.30 GMT. Durable goods orders are expected to register a decline of 3.5% after a much bigger decline of 4% in June. Excluding the volatile transport sector; the figure is supposed to increase by 0.5% after a 0.5% decline in June. This figure is a great contributer of the GDP.
UK GDP: Friday, 08.30.This is another GDP release before the Brexit decision. Though the Brexit vote is expected to affect the economic growth in the UK and the sterling in general; the GDP is expected to rise by 0.6% from the first quarter’s increase of 0.4%.
US GDP: Friday, 12.30 GMT. Growth in the US economy is expected to revise down to 1.1% from a previous figure of 1.2%. This comes after the much disappointing reading for the second quarter at 1.2% and hence this reading may not have a big impact on the market as the first did.
Fed’s Yellen Speech: Friday, 12.30 GMT. Current Fed Chair, Yellen will be speaking at the Jackson Hole Symposium this Friday. Though her contribution is unclear, her comments will be closely followed to reveal any hawkish sentiment adding to the possibility of a rate hike.
You can view all the events scheduled this coming week in Economic Calendar