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What to Expect in Upcoming Trading Week

Published on: 09/21/18 10:16 AM

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Category: Currency, Forex, Latest News, Market, Trade, Trading, US News, World News

As a steady week of trading comes to a close, investors are looking toward next week already. Here is what to expect in terms of report releases and meetings:



FEDERAL RESERVE RATE HIKE:


The Federal Reserve will meet on Wednesday and all signs are indicating a 25-bps rate hike. Experts are also now predicting another increase in rates in December, making it the fourth increase of the year. The Fed funds futures are now pricing the pace of the rate hikes to decrease to only two increases in 2019, with one happening in June and the next one in December to close out the year. The Summary of Economic Projections is also due soon and will include the 2021 economic forecasts. The Fed is predicted to slowly continue to raise hikes in an effort to help strengthen the value of the falling US dollar.
 

DURABLE GOODS ORDERS DATA:


On Thursday, the latest Durable Goods Orders report will be released. This data is an important signpost detailing US product consumption, which accounts for approximately 70 percent of total gross domestic product (GDP). The new report is expected to detail an increase of 1.5 percent in August, compared to a 1.7 percent decrease in July. This promising data is expected to keep US growth predictions elevated through the third quarter of the year. The latest updated third quarter predictions will be released following Thursday’s report. The improved data on durable goods orders indicates that consumers are feeling confident about their financial security. Retailers are hopeful that this consumer confidence will carry over into the holiday shopping season.

CANADIAN GROSS DOMESTIC PRODUCT UPDATE:


On Friday, Canada is expected to announce strong economic data, as its GDP is expected to ring in at an increase of 2.2 percent from the month of July. Despite the ongoing tensions between the United States regarding the NAFTA trade negotiations, this upheaval is not reflected in the overall GDP data. In other Canadian economic news, inflation is holding near the average of the Bank of Canada’s range, indicating stability and steady growth. The bank will meet in October and is expected to raise interest rates another 25-bps.
 

EUROZONE CONSUMER PRICE INDEX (CPI):


On Friday, the September Eurozone Core CPI is due and predictions are that it will come in at an increase of 2.1 percent since the last reading in August. The value of the Euro remains largely unchanged since last year.