NAGA : The Top 7 Economic Events Happening This Week | August 1-5

The previous week was very busy as it triggered another rally in the financial markets. What can we expect in the near future? Surely, the behavior of the markets will depend a lot on economic indicators and events this week.

We have prepared for you a list of the top 7 economic events and their forecasts. This can be your guide to this week's fundamental analysis of the markets.

Let's take a look at this

The ISM Manufacturing PMI (Purchasing Managers' Index) - Monday, August, 1st

The US ISM Manufacturing PMI will be released on Monday, August 1 at 17:00 GMT+3.

The ISM manufacturing index, also known as the purchasing managers' index (PMI), is a monthly indicator of U.S. economic activity based on a survey of purchasing managers at more than 300 manufacturing firms. It is considered to be a key indicator of the state of the U.S. economy.

US ISM Manufacturing PMI is at a current level of 53.00, down from 56.10 last month and down from 60.60 one year ago. This is a change of -5.53% from last month and -12.54% from one year ago. If the index is above 50.0 it is indicating economic growth. However, we can see that the figure is decreasing.

Beware of potential volatility for US Dollar and US Stocks

The Reserve Bank of Australia Cash Rate and Statement - Tuesday, August, 2nd

On Tuesday, August 2, the Reserve Bank of Australia Cash Rate and Statement will be released at 07:30 GMT+3.

The RBA Rate Indicator shows market expectations of a change in the Official Cash Rate (OCR) set by the Reserve Bank of Australia. At its July 2022 board meeting, the Reserve Bank of Australia (RBA) raised the cash rate by 50 basis points to 1.35%.

The cash rate is the rate that banks use to lend to one another in a short-term money market, but it has a very large effect on mortgage rates in the economy, the rates that people get on their savings, and affects asset prices.

A higher rate can lead to stronger demand for the currency. The higher the interest rate, the better for the currency.

Beware of potential volatility for AUD and AUS200

The JOLTS Job Opening - Tuesday, August, 2nd

On Tuesday, August 2, the JOLTS Job Opening will be held at 17:00 GMT+3.

The Job Openings and Labor Turnover Survey (JOLTS) program produces monthly data on job openings, new hires, new quits and layoffs, and other kinds of labor market turnover. The number of job openings is used as an indication of the health of the employment sector.

A rising figure usually indicates a growing economy, normally understood as dollar positive. Lower demand and higher layoffs, on the other hand, signal contracting growth. The report has a limited impact on financial markets as it is released with a two-month delay, and there is other information providing a more accurate picture of the employment situation in the country.

Beware of potential volatility for US Dollar and US Shares

The ISM Services PMI - Wednesday, August, 3rd

The ISM Services PMI in the United States will be released on Wednesday, August, 3, at 17:00 GMT+3.

The ISM Services PMI provides significant information about factors affecting total output, growth, and inflation. When the business activity index is increasing, investors might infer that the stock markets should increase because of higher expected corporate profits.

So, If the figure is higher than 50.0 it is indicating economic growth while below 50.0 indicates economic contractions. The higher, the better for the currency.

Beware of potential volatility for USD and US Stocks

The UK Official Bank Rate and Monetary Policy Summary - Thursday, August, 4th

The UK Official Bank Rate and Monetary Policy Summary will be held on Thursday, August, 4.

The bank rate is the rate charged by the central bank for lending funds to commercial banks. The bank rates influence the lending rates of commercial banks.

The Bank of England's Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. At the last meeting ending on 15 June 2022, the MPC voted by a majority of 6-3 to increase Bank Rate by 0.25 percentage points, to 1.25%.

The higher the interest rate, the better for the currency, but may put pressure on the UK Stock market.

Beware of potential volatility for GBP and FTSE100

The Non-Farm Payroll Change and Unemployment Rate - Friday, August, 5th

The Non-farm Payroll Change and Unemployment Rate will be released on Friday, August, 5.

Nonfarm payroll reflects the short-term job market growth, while the unemployment rate represents the long-term trend. If non-farm payrolls are expanding, the increase is an indication that the economy is growing. However, if increases in non-farm payroll occur at a fast rate, this may lead to an increase in inflation and that may be viewed as a negative for the economy.

Beware of potential volatility for US Dollar and US Shares The Canadian Unemployment Rate and Employment Change - Friday, August, 5th

The Canadian Unemployment Rate and Employment Change will be released on Friday, August, 5.

In Canada, the unemployment rate measures the number of people actively looking for a job as a percentage of the labor force. The higher the employment change and the lower the unemployment rate, the better for the currency.

However, the unemployment rate in Canada fell to 4.9% in May 2022 from 5.1% in the prior month, beating market expectations of 5.1%. It was the lowest rate on record since comparable data became available in 1976, extending the robust recovery of the labor market from the COVID-19 pandemic.

Beware of potential volatility for CAD

That's it for this week!

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