Week Ahead | Economic uncertainty continues; Investors eye on vaccine for the virus

13th July 2020 – 17th July 2020

Monday

• USD Federal Budget Balance (Jun)
• GBP BRC Retail Sales Monitor (Jun)
• AUD NAB Business Confidence (Jun)

The Federal Budget Balance measures the difference in value between the federal government's income and expenditure during the reported month. A positive number indicates a budget surplus, a negative number indicates a deficit.

The British Retail Consortium (BRC) Retail Sales Monitor measures the change in the value of same-store sales in BRC-member retail outlets in the U.K.

The National Australia Bank (NAB) Business Confidence Index rates the current level of business conditions in Australia. Changes in business sentiment can be an early signal of future economic activity such as spending, hiring, and investment. The index is based on data collected from a survey of around 350 companies. A level above zero indicates improving conditions; below indicates worsening conditions.

 

Tuesday

• EUR ZEW Economic Sentiment (Jul); Industrial Production (May)
• USD Core CPI (Jun)

Germany ZEW Current Conditions: This survey summarizes the net percentage of positive and negative responses regarding the expectations for economic growth in the next 6 months, as given by financial analysts from banks, insurance companies and large industrial enterprises.

Industrial Production measures the change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities.

The Core Consumer Price Index (CPI) measures the changes in the price of goods and services, excluding food and energy. The CPI measures price change from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.

 

Wednesday

• GBP CPI (Jun)
• USD Industrial Production (Jun)
• CAD BoC Interest Rate Decision
• AUD Unemployment Rate (Jun); NAB Quarterly Business Confidence

Bank of Canada (BOC) governing council members come to a consensus on where to set the rate.Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.

The Unemployment Rate measures the percentage of the total work force that is unemployed and actively seeking employment during the previous month.

 

Thursday

• GBP Claimant Count Change (Jun); Unemployment Rate (May); BOE Credit Conditions Survey
• EUR Trade Balance (May); ECB Monetary Policy Statement; ECB Interest Rate Decision (Jul)
• USD Core Retail Sales (Jun); Philadelphia Fed Manufacturing Index (Jul)

Claimant Count Change measures the change in the number of unemployed people in the U.K. during the reported month. A rising trend indicates weakness in the labor market, which has a trickle-down effect on consumer spending and economic growth.

The Trade Balance measures the difference in value between imported and exported goods and services over the reported period. A positive number indicates that more goods and services were exported than imported.

European Central Bank Monetary Policy Statement contains the outcome of the ECB's decision on asset purchases and commentary about the economic conditions that influenced their decision.

The Philadelphia Federal Reserve Manufacturing Index rates the relative level of general business conditions in Philadelphia. A level above zero on the index indicates improving conditions; below indicates worsening conditions. The data is compiled from a survey of about 250 manufacturers in the Philadelphia Federal Reserve district.

 

Friday

• GBP Retail Sales (Jun)
• EUR Core CPI (Jun)
• USD Michigan Consumer Expectations (Jul);Michigan Consumer Sentiment (Jul)

The University of Michigan Consumer Sentiment Index rates the relative level of current and future economic conditions. There are two versions of this data released two weeks apart, preliminary and revised. The preliminary data tends to have a greater impact. The reading is compiled from a survey of around 500 consumers.