Week Ahead – Top 3 Market Events

Date: August 15th– August 19th 

Last week, the markets were buoyed by the US Consumer Price Index report which showed inflation slowing to 8.5% in July, down from 9.1%. Comments from the Federal Reserve made it very clear that they were not claiming any sort of victory against inflation, and that the targets remain way off, so the debate began on if this was an overreaction.

Federal Reserve Meeting Minutes

The main event of the week will be the Fed meeting minutes, due on Wednesday at 7:00 pm (GMT). This is a detailed report of the FOMCs most recent meeting. Traders will be listening for any language that the most aggressive rate hiking is behind us.

However, economists predict this could be a hawkish minutes if the comments coming from Federal Reserve after last weeks inflation report is anything to go by. It was indicated that inflation is now embedded and pressures remain broad-based. Essentially, the Federal Reserve is looking straight through this number. There could be some risk-off action flooding the markets this week.

UK Inflation

Also on Wednesday, eyes will be on the UK when it releases its Consumer Price Index Report. This is the primary tool for inflation in a country and has been the main talking point of the year.

The UK inflation rate year on year currently stands at 9.4%, and the Bank of England seem concerned that this is set to go higher. The current prediction is 9.9%, but traders are bracing for a figure above 10% after the recent Bank of England hinting living standards wont improve until 2024.

U.S Retail Sales  

Wednesday seems to be the day to keep your eyes on! U.S retail sales are due out at 1:30 pm (GMT), and this will show the change in the total value of sales at the retail level. This number is expected to fall from 1% to 0.2%, and therefore show inflation is having a toll on consumer spending.

Everyone at Zenfinex wishes you the best trading week. If you would like to know more about the products we offer, feel free to visit www.zenfinex.com.

Disclaimer:  Trading Foreign Exchange is highly speculative and may not be suitable for all investors. The leverage created by trading on margin can work against you and losses can exceed your entire investment. Only invest with money you can afford to lose and ensure that you fully understand the risks involved.