Monday
Juneteenth- stock market closed
Tuesday
10 am EST – U.S. Existing Home Sales 5.39M expected (note 1)
Wednesday
8:00 am EST – UK CPI YOY 9.1% expected
8:30 am EST – Canada CPI YOY 5.4% expected
10:00 am EST – Fed Chair Powell Testifies (note 2)
10:30 am EST – BOE MPC Member Cunliffe Speaks (note 3)
Thursday
8:30 am EST – US Initial Jobless Claims 225l expected (note 4)
11 am EST – US Crude Oil Inventories (note 5)
4:30 pm EST – US Federal Reserve Bank Stress Test Results (note 6)
Friday
10 am EST – US New Home Sales 585k expected (note 7)
Note 1
Existing Home Sales measures the change in the annualized number of existing residential buildings that were sold during the previous month. This report helps to gauge the strength of the U.S. housing market and is a key indicator of overall economic strength.
A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.
Note 2
Federal Reserve Chair Jerome Powell (Feb. 2018 – Feb. 2022) is to testify on the economic outlook and recent monetary policy actions before the Joint Economic Committee, in Washington DC. The testimony is in two parts; the first is a prepared statement, then the committee conducts a question and answer session. The Q&A portion of the testimony can see heavy market volatility for the duration.
Note 3
Bank of England (BOE) Monetary Policy Committee (MPC) Member Sir Jon Cunliffe (since November 2013) is to speak. BOE MPC members are responsible for setting the benchmark interest rate and their speeches often contain indications on the future possible direction of monetary policy.
Note 4
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.
A higher than expected reading should be taken as negative/bearish for the USD, while a lower than expected reading should be taken as positive/bullish for the USD.
Note 5
The Energy Information Administration's (EIA) Crude Oil Inventories measures the weekly change in the number of barrels of commercial crude oil held by US firms. The level of inventories influences the price of petroleum products, which can have an impact on inflation.
If the increase in crude inventories is more than expected, it implies weaker demand and is bearish for crude prices. The same can be said if a decline in inventories is less than expected.
If the increase in crude is less than expected, it implies greater demand and is bullish for crude prices. The same can be said if a decline in inventories is more than expected.
Note 6
Results of the bank stress test will be released for 34 of the largest US banks. Details will include which banks passed, which failed, estimates for new capital requirements and whether each financial institution will be able to increase dividends and continue share buybacks.
Note 7
New Home Sales measures the annualized number of new single-family homes that were sold during the previous month. This report tends to have more impact when it's released ahead of Existing Home Sales because the reports are tightly correlated.
A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.
Leave a Reply