Review of the main events of the Forex economic calendar for the next trading week (30.11.2020 – 06.12.2020)
Trading on key Forex news: next week we are expecting the publication of important macro statistics from China, Germany, Eurozone, Switzerland, US, Canada, Australia, as well as the results of the meeting of the RB of Australia.
American stock indices rose last week, returning to the zone of absolute highs after a correction. At the same time, the US dollar declined last week, confirming the inverse correlation with American stock indices that has been established in recent months. This is understandable: the Fed is pouring almost unlimited amounts of liquidity into the financial system, increasing the volume of purchases of stock market assets along the way.
Last week, the DXY dollar index dropped another 0.47%, coming close to the level of lows of more than 2 years ago, near 91.80.
Meanwhile, the growth of stock indices is also taking place against the backdrop of optimism by market participants, which is supported by hopes for the imminent appearance of an effective vaccine against coronavirus and the commitment of the world’s largest central banks to extra-soft monetary policy.
Despite the alarming rate of increase in the number of coronavirus cases in the world, investors still hope for a rapid V-shaped recovery of the global economy and continued growth in stock markets.
Next week, investors will pay attention to the publication of important macro statistics from China, Germany, Eurozone, Switzerland, US, Canada, Australia and on the results of the meeting of the RB of Australia. But their focus will probably be on the publication on Friday of monthly data from the US labor market.
Traders should pay attention to the publication of the following macro indicators:
*during the coming week, new events may be added to the calendar and / or some scheduled events may be canceled
Monday, November 30
01:00 CNY China Federation of Logistics and Purchasing (CFLP) Manufacturing PMI
This is an important indicator of the state of the Chinese economy as a whole. A result above 50 is seen as positive and strengthens the CNY, below 50 as negative for the yuan. Forecast: 51.5 in October (against 51.4 in September, 51.0 in August, 51.1 in July and 50.9 in June).
The relative growth of the index and the value of 50 should have a positive effect on the CNY. The data above 50 indicates an increase in activity, which has a positive effect on the quotes of the national currency.
In the opposite case, and if the indicator is below 50, the yuan will be under pressure and will probably decrease.
01:00 CNY China Federation of Logistics and Purchasing (CFLP) Services PMI
This indicator assesses the state of the services sector in the Chinese economy. A result above 50 is considered positive and strengthens the yuan. Forecast: 52.1 in September (against 56.2 in September, 55.2 in August, 54.2 in July and 54.4 in June).
Despite the relative decline, the indicator is still above 50, which is likely to have a positive impact on the yuan quotes.
13:00 EUR Harmonized Index of Consumer Prices (HICP) in Germany (preliminary release)
This index is published by the EU Statistics Office and is calculated on the basis of a statistical method agreed upon between all EU countries. It is an indicator for assessing inflation and is used by the Governing Council of the ECB to assess the level of price stability. A positive result strengthens the EUR, a negative one weakens it.
In May, the HICP index (in annual terms) increased by +0.5%, in June by…