The stock market as a whole and the prices of individual firms’ shares of stock can be impacted by global events like the Consumer Price Index (CPI), Producer Price Index (PPI), and the US Initial Jobless Rate (IJR).
Gov. Bailey of the BoE speaks (on July 9): Governor of the Bank of England (BOE), Andrew Bailey (Mar 2020–Mar 2028), will talk. Bailey has the most authority over the value of the pound than any other individual because she is the chair of the Monetary Policy Committee (MPC) of the BOE, which regulates short term interest rates. Traders closely watch his public appearances for hints about his future monetary policy. His remarks can start a brief upward or downward trend.
German MoM June CPI (July 11): From the viewpoint of the consumer, the Consumer Price Index (CPI) tracks changes in the cost of products and services. Germany has the highest output of any nation in the eurozone, thus the European Central Bank, which is responsible for preserving price stability, pays special attention to this number. A reading that is greater than expected is typically positive (bullish) for the EUR, whereas a result that is weaker than expected is typically unfavourable (bearish) for the currency.
United States Core CPI (MoM) (Jun) (12 July): The Core Consumer Price Index (CPI), which excludes food and energy, tracks changes in the cost of goods and services. In order to ensure price stability, the central bank pays close attention to this figure. Core inflation is more closely monitored than overall inflation, which has a tendency to be more volatile, because the Fed thinks that it is a better indicator of underlying pricing pressures. A reading that exceeds expectations is typically positive (bullish) for the USD, whereas a reading that is below expectations is typically unfavourable (bearish) for the USD.
The Bank of Canada (BOC) announces its decision over where to set the benchmark interest rate on July 12. Short-term interest rates have a significant role in determining how much a currency is worth, thus traders actively monitor changes in interest rates. A reading that is weaker than anticipated is typically positive (bullish) for the CAD, whereas a result that is stronger than anticipated is typically unfavourable (bearish) for the CAD.
Crude Oil Inventories (July 12): The EIA’s Crude Oil Inventories report tracks the weekly change in the quantity of commercial crude oil held by US businesses. Inflation may be affected by the price of petroleum products, which is influenced by the amount of inventories. Crude prices will decline if the rise in stocks is greater than anticipated because it suggests less demand. The same holds true if an inventory drop is less pronounced than anticipated. petroleum prices will rise if the increase in petroleum is less than anticipated since it suggests higher demand. The same holds true if an unexpectedly large fall in inventories occurs.
Manufacturing output in Britain (MoM) (May) (July 13): Manufacturing Production tracks the shift in the overall value of manufactured goods, adjusted for inflation. About 80% of total industrial production is accounted for by manufacturing. A rating that is better than expected is typically positive (bullish) for the pound, while one that is weaker than expected is typically unfavourable (bearish).
Gross Domestic Product (GDP) is a measure of the annualised change in the value of all goods and services produced by the economy. It was last updated for Britain in May (MoM) (July 13). It serves as the most comprehensive indication of economic activity and the main gauge of the economy’s health. A reading that is higher than expected should be interpreted as bullish or positive for the pound, whereas a reading that is lower than expected should be interpreted as bearish or negative.
Gross Domestic Product (GDP) (YoY) (May): GDP measures the change in the value of all goods and services generated by the economy after accounting for inflation. It serves as the most comprehensive indication of economic activity and the main gauge of the economy’s health. A figure that exceeds expectations is typically positive (bullish) for the JPY, whereas a result that is below expectations is typically unfavourable (bearish) for the JPY.
US PPI (MoM) for June as of July 13: The change in input costs for unfinished, partially finished, or finished goods and services is tracked by the Producer Price Index (PPI). A portion of increased input costs will be absorbed by the producer and a portion will be passed on to the customer. On the other hand, if input costs decrease, the producer will benefit from wider profit margins and some of the decrease will be passed on to the customer in the form of cheaper prices. PPI has an impact on consumer prices, hence central bankers monitor it as part of achieving their goal of price stability. A reading that exceeds expectations is typically positive (bullish) for the USD, whereas a reading that is below expectations is typically unfavourable (bearish) for the USD.
Initial Jobless Claims in the US (as of July 13): This statistic shows how many people applied for unemployment benefits for the first time in the previous week. The market impact varies from week to week, but this is the most recent U.S. economic data available. A figure that is higher than expected is typically unfavourable (bearish) for the USD, whereas a reading that is lower than expected is typically favourable (bullish).
