The currency markets will be taking a step back after a rather busy week that saw the U.S. Federal Reserve hike interest rates. Various Fed officials are lined up to speak during the week including Fed Chair Janet Yellen.
In the Eurozone data shifts to flash PMI numbers while in the UK, the inflation data once again hits the spotlight as economists expect consumer prices to rise 2%, hitting the Bank of England’s inflation target rate. Here’s a quick guide to the economic events coming up this week.
Fed speeches dominates the week
Following the 25 basis points rate hike last week, various FOMC members will be taking turns to provide more clarity to the markets which is likely to dominate the news flows against an otherwise quiet week. Fed Chair Janet Yellen will be speaking on Thursday and investors will be closely keeping an ear to what the Fed chair has to say.
Given the fact that the Fed did not change its economic projections nor tweaked its dot plot to accommodate further rate hikes, the markets viewed this as a dovish signal from the Fed. Therefore, this week’s Fed speeches will likely offer more clarity that could see the markets readjust the expectations.
For the moment, there are two more rate hikes projected for the remainder of the year. The markets are currently contemplating the next rate hike which is expected to come as quickly as June and the next rate hike expected in September.
Besides the Fed speeches, the U.S. durable goods orders numbers will be coming this week on Friday which will be the sole data point from the U.S.
Eurozone flash PMI’s and Dutch election results
Flash PMI numbers out of eurozone this week will offer initial estimates into the economic performance from the region. IHS/Markit will be releasing the preliminary estimates on manufacturing and services PMI across a number of eurozone economies including Germany and France as well as the composite Eurozone flash PMI data for the entire region.
Read more: https://www.orbex.com/blog/2017/03/fx-week-ahead-fed-speeches-uk-inflation-focus/