What happened? On Monday, February 21, Russian President Vladimir Putin signed decrees recognizing the sovereignty of the Donetsk and Lugansk People's Republics…
Will the US economy withstand the virus hit?
US Monthly Durable Goods Orders will be announced on Wednesday at 14:30 MT time.
Instruments to trade: EUR/USD, USD/JPY, USD/CHF, GBP/USD
Monthly Durable Goods Orders are a very good indicator of how the US industry responds to the virus. As it comes in hindsight, the figure that will be announced on Wednesday will refer to the month of February. That’s when the virus already changed gears and started smashing doors of states in all continents – primarily, the US. For the latter, however, February still was an “introductory” chapter, so the company managers did not yet go hardcore to factor in the virus damage and reflect it with lower orders for production. Hence, with this indicator out, we will be able to observe first-hand the evolution of the US industry’s pricing-in of the global damage. If the figure is higher than the expectation, this will support the USD confirming the strong fundamentals of the American economy Donald Trump and Jerome Powell liked to mention.
- If the figures outperform the expectations, the USD will gain strength;
- If the figures come lower than expected, the USD will lose value.
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).
The US Markit will publish Flash Manufacturing and Flash Services PMIs (purchasing managers' indices) on June 23 at 16:45 GMT+3.
The Fed Chair Jerome Powell will testify on the Semi-Annual Monetary Policy Report before the House Financial Services Committee on June 22-23 at 17:00 GMT+3.
Canada will publish Retail Sales and Core Retail Sales on June 21 at 15:30 GMT+3.