5 Key Economic Calendar Events to Watch This Week

In the upcoming week, investors will focus on Wednesday’s eagerly awaited Federal Reserve policy statement for guidance on the future pace of interest rate hikes. Additionally, market participants will look forward to a monetary policy announcement from the Bank of Japan on Friday, with rising expectations for further stimulus measures.

Traders will also anticipate data concerning second quarter gross domestic product (GDP) from the U.S., U.K., and Europe, seeking insights into the global economic landscape following Britain’s surprising decision to exit the European Union.

As the week approaches, a list of the five most significant events on the economic calendar has been compiled, highlighting potential market impacts.

1. Federal Reserve Rate Decision

The Federal Reserve will conclude its two-day policy meeting at 18:00 GMT on Wednesday, as policymakers assess the aftermath of Britain’s EU exit. A recent string of positive economic data has fueled speculation about a possible interest rate hike. Current market expectations suggest a 16% probability of a rate increase by September, with the likelihood rising to 45%, up from less than 20% a week ago and 9% at the start of the month.

2. Bank of Japan Policy Announcement

The Bank of Japan is scheduled to announce its latest monetary policy during the Asian morning on Friday. A press conference will follow the announcement. Speculation is increasing that the BOJ will further lower its main interest rate into negative territory and expand its stimulus program to aid the domestic economy, particularly in light of potential Brexit-related impacts. Analysts predict that there is an 85% chance the BOJ will implement easing measures.

3. U.S. Advanced Second Quarter Growth Data

The U.S. will release its advanced second quarter growth data on Friday at 12:30 GMT. Expectations are set for an annual growth rate of 2.6% for the April-to-June period, a significant improvement from the 1.1% growth seen in the previous quarter. Recent favorable economic indicators, including housing starts, retail sales, and employment figures, suggest that the economy regained momentum in the second quarter.

4. U.K. Preliminary Q2 GDP Figures

The Office for National Statistics will report the U.K.’s preliminary second quarter GDP figures on Wednesday at 08:30 GMT. Despite the Brexit decision, the report is predicted to show a 0.5% growth rate for the three months ending June 30, following a 0.4% increase in the first quarter. However, growth is anticipated to decelerate sharply in the latter half of the year as businesses navigate uncertainty regarding the country’s future.

5. Euro Zone Second Quarter Flash GDP

On Friday at 09:00 GMT, the Eurozone will publish its flash GDP figures. Analysts forecast that the report will indicate a 0.3% growth for the April-June period, down from 0.6% in the preceding quarter.

Stay informed about this week’s significant economic events to better navigate the evolving market landscape.