19, 2011
(Allthingsforex.com)
–
Economic
growth,
consumer and
housing market
data from the
world's
largest
economy,
coupled with
the EU summit,
the U.K.
inflation gauge
and the Bank of
England meeting
minutes, will
place the U.S.
dollar, the
euro, and the
pound in the
spotlight
throughout the
busy week
ahead.
In
preparation for
the new trading
week, here is
the outlook for
the Top 10
economic events
that will move
the markets
around the
globe.
1. USD-
U.S. Existing
Home
Sales,
the main gauge
of the
condition of
the U.S.
housing market
measuring the
number of
closed sales of
previously
constructed
homes,
condominiums
and co-ops,
Mon., Mar. 21,
10:00 am,
ET.
In
light of the
worst-than-expected
housing starts
report, the
sales of
existing homes
could also
confirm the
weakness in the
U.S. housing
market with a
monthly sales
decline to 5.15
M in February
from 5.36 M in
January.
2. GBP-
U.K.
CPI-Consumer
Price
Index,
the main
measure of
inflation
preferred by
the Bank of
England, Tues.,
Mar. 22, 5:30
am, ET.
Inflation in
the U.K. is
forecast to
remain
stubbornly high
with a reading
of 4.2% y/y in
February, up
from 4.0% in
January and
well above the
Bank of
England's
3.0% ceiling.
3. GBP-
Bank of England
Monetary Policy
Committee
Meeting
Minutes,
a comprehensive
report of the
central
bank's
meeting that
could provide
an outlook on
the economy,
interest rates
and future
monetary
policy, Wed.,
Mar. 23, 5:30
am, ET.
The
minutes are
expected to
show that the
Monetary Policy
Committee was
not in any
hurry to hike
interest rates
as the majority
of policy
makers voted
against a rate
hike. However,
rising
inflationary
pressures could
continue to put
pressure on the
Bank of England
to consider a
rate hike
sooner rather
than later. If
at upcoming
meetings more
committee
members were to
decide to join
the camp of the
three
"rate
hawks"
Andrew
Sentence,
Spencer Dale
and Martin
Weale, the
market could
continue to
price
expectations
for an interest
rate increase
in the near
future.
4. JPY-
Japan Trade
Balance
of the
difference
between imports
and exports,
Wed., Mar. 23,
7:50 pm,
ET.
The
Japanese export
growth is
expected to
make up for the
deficit
reported last
month with a
trade surplus
reading of up
to 895 B yen in
February,
compared with
the 471 B yen
deficit in
January.
5. GBP-
U.K. Retail
Sales,
an important
gauge of
consumer
spending
measuring sales
at retail
establishments,
Thurs., Mar.
24, 5:30 am,
ET.
Rising
fuel and food
costs could
weigh on the
U.K. consumer
sentiment and
spending with
retail sales
dropping by
0.5% m/m in
February from
the 1.9% m/m
increase in the
previous month.
6. USD-
U.S. Durable
Goods
Orders,
a leading
indicator of
economic
activity
measuring
durable goods
orders placed
with domestic
manufacturers,
and U.S.
Jobless Claims,
an important
gauge of
employment
trends and
labor market
conditions,
Thurs., Mar.
24, 8:30 am,
ET.
After a
sharp 3.2% m/m
bounce in
January, the
U.S. orders for
durable goods
are expected to
pull back with
a reading of
1.6% m/m in
February.
First-time
applications
for
unemployment
benefits are
forecast to
reach 492K,
slightly higher
that the
reading of 385K
in the previous
week. To
indicate a
significant
decline in
unemployment,
economists
estimate that
jobless
applications
would need to
fall to 375K or
below.
7. JPY-
Japan CPI-
Consumer Price
Index,
the main
measure of
inflation
preferred by
the Bank of
Japan, Thurs.,
Mar. 24, 7:30
pm, ET.
Deflationary
pressures in
Japan could
continue to
push the
inflation gauge
below 0% for
another month
with the CPI
registering a
-0.3% y/y
reading in
February from
-0.2% y/y in
January.
8. EUR-
Germany IFO
Institute
Business
Climate and
Expectations
Index,
a leading
indicator of
economic
conditions and
business
expectations in
the
Euro-zone's
largest
economy, Fri.,
Mar. 25, 5:00
am, ET.
The
German IFO
index is
forecast to
show a small
shift lower in
the optimistic
outlook for the
largest economy
in the
Euro-zone with
a reading of
110.5 in March,
compared with
111.2 in the
previous
month.
9. USD-
U.S. GDP- Gross
Domestic
Product,
the main
measure of
economic
activity and
growth in the
world's
largest
economy, Fri.,
Mar. 25, 8:30
am,
ET.
The
main spotlight
economic event
of the week
will bring the
third and final
reading for the
U.S. Q4 GDP
which is
forecast to
revise the U.S.
economic growth
higher by 3.0%
in the fourth
quarter of
2010, up from
the revised
estimate of
2.8% and faster
than the 2.5%
growth in the
third quarter.
10. EUR-
European Union
Summit,
a meeting of EU
leaders to
discuss
solutions to
the debt crisis
and other
economic
issues, Fri.,
Mar. 25, All
Day
Event.
The
final day of
the March 24th
and 25th EU
Summit would be
the deadline by
which EU
leaders have
promised to
deliver
concrete
measures and
"comprehensive
solutions"
to contain the
debt crisis,
including
possible
expansion of
the European
Financial
Stability
Facility fund.
With some
alarming trends
re-emerging
from the
European debt
markets and
debt
obligations
coming due for
Spain and
Portugal,
should the EU
leaders fail to
deliver on
their promise,
a massive
investor
disappointment
could weigh on
the euro.
Source: Fxstreet.com
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