How Energy Crisis Affects German PMI August 23, 2022, 10:30 GMT+3 Germany will publish Flash Manufacturing PMI data on Tuesday, August 23, at 10:30 MT time (GMT+3)…
Chinese yuan is in focus
China’s Manufacturing PMI will be out on Wednesday at 04:00 MT time!
Instruments to trade: USD/CNH, CNH/JPY, EUR/CNH
Manufacturing PMI is the leading indicator of economic health in the country. Basically, it is the survey of purchasing managers, which reveals how they assess current business conditions. Being the world’s second largest economy, Chinese figures usually influence the whole market. These days, the impact has increased amid the coronavirus pandemic as investors measure the global recovery by Chinese economic figures. That’s why this report won’t be important only for the Chinese yuan itself, but also for other financial assets. It will add fresh volatility to the market and may change the overall sentiment. If China’s PMI is better than the forecasts, it will improve the investor’s mood and push up riskier currencies such as the AUD, the NZD, the GBP, and stocks. In the opposite scenario, if China’s PMI is worse than anticipated, it will deteriorate the market sentiment and push upwards safe-haven currencies such as the USD and the JPY.
- The better China’s PMI – the higher the risk tolerance!
- The worse China’s PMI – the lower the risk appetite!
Last week was very interesting for the markets, as we saw the releases of the US Inflation and Disney’s earnings report. So let's see what we should await this week!
The US will reveal Non-farm payrolls on January 7, Friday, at 15:30 GMT+2 (MetaTrader time).
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.
Every week we expect many interesting events that can shake the market.