Weekly Preview Report 09/06/2017
WEEKLY PREVIEW: WEEK ENDING JUNE 16th 2017
Monday 12th June- No Major Economic Events.
Tuesday 13th June- UK Consumer Price Index, 11:30 GMT+3.
Data for Consumer prices in May will be released by the U.K. Office for National Statistics. Prices have been climbing on a monthly basis since January 2016 with April showing a rise of 2.5% year-on-year.
At 12:00 GMT+3 The German ZEW Economic Sentiment report will be released and a marginal rise is expected; with a forecast of 20.9 points for June.
Wednesday 14th June- FOMC Interest Rate Decision, 21:00 GMT+3.
The Federal Reserve is expected to raise the Fed Funds Rate by 25 basis points to 1.25% at the June meeting. The committee is expected to raise rates approximately three times this year, with one hike already implemented at the March meeting earlier this year. The same day, both CPI and Retail Sales data for May will be released, with a marginal rise expected for Core Retail Sales and a slowdown expected in consumer spending, when compared with the previous month.
Thursday 15th June- ECB Minimum Bid Rate, 14:45 GMT+3.
Another rate decision will come from Eurozone policymakers on Wednesday as the European Central Bank continues to monitor the bloc’s inflation data. In his last policy statement, Mario Draghi emphasized that there was less urgency in providing further stimulus to the monetary union. The benchmark interest rate is expected to remain at 0% at June’s policy meeting.
In Japan, economic growth figures for the first quarter will be released. Initial estimates suggest growth for the three months ending March was 0.5%, beating estimates of 0.4% growth. Estimates have missed actual figures three times since the third quarter of 2016, as growth has consistently fallen below expectations. Further estimates will be released at 02:30 GMT+3.
Trade Balance data for China will be issued at 05:30 GMT+3. China has historically run a trade surplus as a net exporter; however, in March a deficit of 10 billion provided a surprise for economists as timing of the Chinese New Year artificially skewed results. Estimates have only missed expectations once since the start of the year.
Friday 16th June- Canadian Employment Change, 15:30 GMT+3.
The Canadian labour market had been performing well until last month which resulted in 31,000 fewer jobs than in April. Despite employment change being volatile, average job creation stood at 53,000 for the start of year. The drop in April’s report defied expectations for a rise of 18,000 new jobs.
Manufacturing production in the U.K. has taken a turn for the worse in 2017, with three consecutive months of contraction. Despite the slowdown in the first quarter, purchasing managers remained optimistic about growth in the second quarter, according to May’s IHS Markit/CIPS Index. The index is expected to release final figures at 11:30 GMT+3.
China consumer prices show that demand is beginning to recover after a dip in prices during February and March, despite the Chinese New Year. Prices made a recovery last month signaling an upturn in consumer prices going into the second quarter. Retail sales growth beat expectations in April reaching 10.7% sustaining the demand seen in March.
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