Week Ahead | Monetary Policy, Economic Data, COVID-19, and Geo-politics are in Focus

27th April 2020 - 1st May 2020

Monday

• JPY Bank of Japan Monetary Policy Statement 

Bank of Japan Monetary Policy Statement contains the outcome of the BOJ decision on asset purchases and commentary about the economic conditions that influenced their decision. The Outlook Report provides insight into the Bank of Japan view of economic conditions and inflation - key factors which shape the future of monetary policy.

 

Tuesday

• USD Goods Trade Balance & Consumer Confidence
• JPY Bank of Japan Interest Rate Decision

The Trade Balance measures the difference in value between imported and exported goods and services over the reported period. The Consumer Price Index (CPI) measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.

 

Wednesday

• CNY Manufacturing Purchasing Managers Index
• USD Fed Interest Rate Decision, Gross Domestic Product & Monetary Statement
• EUR Germany Consumer Price Index

The U.S. Federal Reserve's Federal Open Market Committee (FOMC) statement is the primary tool the panel uses to communicate with investors about monetary policy. It contains the outcome of the vote on interest rates, discusses the economic outlook and offers clues on the outcome of future votes.

Federal Open Market Committee (FOMC) members vote on where to set the rate. Traders watch interest rate changes closely as short-term interest rates are the primary factor in currency valuation

 

Thursday

• GBP Nationwide HPI
• ECB Interest Rate Decision & Monetary Policy Statement, GDP
• USD Initial Jobless Claims

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 six members of the European Central Bank (ECB) Executive Board and the 16 governors of the euro area central banks vote on where to set the rate. Traders watch interest rate changes closely as short-term interest rates are the primary factor in currency valuation.

Initial Jobless Claims measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week.

 

Friday

• GBP U.K. Manufacturing Purchasing Managers Index
• USD Manufacturing Purchasing Managers Index

The Manufacturing Purchasing Managers' Index (PMI) measures the activity level of purchasing managers in the manufacturing sector. A reading above 50 indicates expansion in the sector; below 50 indicates contraction. Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.