What Decisions Will The European Central Bank Make? The Japanese Economy Is Doing Well
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Europe is today at the centrum of economic events. Traders are waiting for the speeches of the head of the American bank and the head of the European bank. Market volatility is sometimes experienced during speeches as traders attempt to decipher interest rate clues.
Result of Japan’s economy
Japan released GDP data for the second quarter. Japan’s economy grew more than initially estimated in the second quarter, government data showed. The Japanese economy now expanded by 0.9% in the April-June period when compared to the prior quarter, more than a preliminary reading of 0.5%. In the first quarter of this year, the Japanese GBP was at -0.1%. It was above the expected level (-0.3%) and the previous level (-0.2%). The data shows that the world’s third-largest economy is now comfortably.
Source: investing.com
Switzerland Unemployment Rate s.a.
The number of unemployed and jobseekers has slightly decreased in Switzerland. The data on the unemployment rate was released at 7:45. The data show that in August the rate fell to 2.1%. For a longer period, since February, it was at a constant level of 2.2%. After such a period, the decline can be positively perceived, especially for the CHF.
Source: investing.com
Crude oil held by US firms
The United States will publish today at 17 CET the weekly change in the number of barrels of commercial crude oil held by US firms. After the number of barrels held drastically dropped to a negative level in the second half of August, the number of barrels held by US firms increased again with the following weeks. Last week the data showed a fall again to the level of -3.326M. It is expected to rise to -0.733 this week.
A fall in oil prices can occur when the rise is greater than expected or when the fall is less than expected. Inventory levels not only affect the price, but also inflation.
Source: investing.com
Jerome Powell will be speaking today
Traders will closely watch the speeches of Federal Reserve (FED) Chair Jerome Powell. Usually, his speeches deal with Monetary Policy topics, which may directly affect the situation of the US dollar. The speech is set at 15:10 CET.
Will the number of applications for unemployment insurance increase?
At 14:30 CET, the US will release data on the number of people who applied for unemployment insurance for the first time. The previous week's data reading was positive. There were 232K people who submitted such an application in the previous period and it was a decrease from 243K. It is expected that the number of people who have applied for insurance will increase to 240K.
Source: investing.com
The main information
At 14:15 CET the most important information of the day will be released. The European Union will publish decisions on the rate hike, and thus the Monetary Policy Statment will also be published.
A rate increase of 75 bp is expected. It is predicted that eurozone the deposit facility will increase of 50 bp.
A press conference will take place half an hour after the release of the data. At the beginning, the prepared statement will be read out, then the conference will be open to press questions. Most importantly, it will be provided clues regarding future monetary policy.
The president of the ECB, Christine Lagarde, will have a speech at 16:15 CET. Her comments may determine a short-term positive or negative trend.
Source: https://www.investing.com/economic-calendar/
