The markets will be moving into the final trading week of the month of March, and the economic calendar is somewhat light, which increases the risk sentiment based on politics.
Some of the important economic events that stand out this week include the GDP figures from the U.S., UK, and Canada while preliminary PMI’s and inflation figures will be coming out from the Eurozone. Here are this week’s key market events for the currencies.
U.S. final revised GDP, Q4 2016 to show 2.0% increase
Data from the U.S. next week will see the final GDP figures for the fourth quarter of 2016. Economists polled are forecasting a 2.0% increase in the GDP for the final revision, which is slightly higher than the 1.9% print seen as of the second revision. The final GDP price index is also expected to remain unchanged at 2.0%, same as the month before.
The U.S. economy was seen expanding at a pace of 3.5% in the third quarter of 2016, and it was the best growth rate seen in nearly two years. The U.S. Federal Reserve is projecting the GDP to expand at a rate of 2% in the near term.
Besides the GDP figures, the weekly U.S. unemployment claims will also be coming out this week. Later in the day, the personal income and spending details will also be released.
Forecasts point to a 1.2% increase in the core PCE on a quarterly basis, rising at the same pace as the previous quarter while personal consumption is projected to rise 3% quarter over quarter.
On Friday, the PCE data will be coming out which is the Fed’s preferred gauge of inflation. Core PCE is expected to rise 0.2% on a month over month basis which is expected to push the annual core PCE rate to 1.7%. Personal spending and Chicago PMI numbers make up for the remainder of the economic releases for the remainder of the week.
Read more: https://www.orbex.com/blog/2017/03/fx-week-ahead-eu-inflation-expected-slow-final-gdp-revisions/