
5 Key Events to Monitor on the Economic Calendar This Week
In the upcoming week, investors will keep a close watch on U.S. economic reports to assess whether the largest economy in the world can handle potential interest rate hikes in the near future, with the nonfarm payrolls data on Friday taking center stage. Additionally, U.S. ISM data regarding both manufacturing and service sector activities will be released.
Attention will also be on the Bank of England’s rate announcement on Thursday, as there are increasing expectations that the central bank may enhance monetary stimulus to mitigate the negative economic impact of the Brexit vote.
In China, market participants will be monitoring data on the country’s manufacturing sector, amid continuing concerns about the health of the world’s second-largest economy.
Outside the G7, traders are anticipating a monetary policy update from the Reserve Bank of Australia on Tuesday, with rising expectations for a potential interest rate cut.
Looking ahead, here are five significant upcoming events on the economic calendar that could influence the markets.
1. U.S. Jobs Report for July
The U.S. Labor Department will release its employment data on Friday at 12:30 GMT (8:30 AM ET). Predictions suggest a jobs growth of 175,000, down from an increase of 287,000 in June. The unemployment rate is expected to remain at 4.9%, while wages are anticipated to rise by 0.2% after a previous increase of 0.1%. A strong employment report could indicate an improving economy and bolster the case for higher interest rates, while a disappointing report may raise concerns about the economic outlook, pushing tighter monetary policy further down the line.
2. Bank of England Rate Decision
On Thursday at 11:00 GMT (7:00 AM ET), the Bank of England will announce its rate decision, followed by a media press conference at 11:30 GMT (7:30 AM ET). A recent Reuters poll suggested that the central bank might lower its benchmark interest rate from 0.50% to 0.25%. Although there is anticipation for more easing, many economists believe the bank will hold off on introducing new measures for the time being.
3. China Manufacturing PMIs
The China Federation of Logistics and Purchasing will release manufacturing data on Monday at 01:00 GMT (9:00 PM ET Sunday), followed by the Caixin survey at 01:45 GMT (9:45 PM ET). The official manufacturing purchasing managers’ index is expected to stay steady at 50.0 in July, while the Caixin index is projected to slightly increase to 48.7 from 48.6 in the previous month. A figure below 50.0 suggests a contraction in the industry.
4. U.S. ISM PMI Surveys
The Institute of Supply Management is set to release its data on Monday at 14:00 GMT (10:00 AM ET), with expectations for a slight decline to 53.0. Any reading above 50.0 indicates expansion. Furthermore, the ISM will provide details for the service sector on Wednesday, where a modest decrease is expected.
5. Reserve Bank of Australia Rate Decision
The Reserve Bank of Australia’s latest rate decision will be announced on Tuesday at 04:30 GMT (12:30 AM ET). Many economists predict a cut in interest rates from 1.75% to an all-time low of 1.50% to help spur sluggish inflation.
Stay informed about all significant economic events this week to better navigate the markets.