Last week’s economic data releases have basically confirmed coronavirus damage to global economies. The U.S. Unemployment Rate hit almost 15%, as Friday’s monthly jobs data release showed. But will we get a meaningful downward correction following an over-month-long rally in stocks? This week the markets will await Wednesday’s Fed Chair Powell speech.
The week behind
Last week’s economic data have revealed further coronavirus impact on global economies. The U.S. monthly jobs data came out on Friday and the Unemployment Rate got close to 15% from the previous value of 4.4%! However, the recent economic data releases seem to be very much priced in by the markets. And Tuesday’s ISM Non-Manufacturing PMI release has been better than expected.
The week ahead
What about the coming week? On Wednesday there will be a speech from the Fed Chair Jerome Powell. Friday’s U.S. Retail Sales will likely be very closely watched by the markets. On Wednesday we will get some important economic data releases from the Eurozone and Australia. Let’s take a look at key highlights:
- Wednesday’s Fed Chair Powell Speech will probably be the most important economic event of the coming week.
- On Friday we will get the U.S. Retail Sales number for the previous month.
- Friday’s German GDP number release will be closely watched by the Euro currency traders.
- The other important economic data releases this week include Wednesday’s U.K.’s GDP number and Australia’s Employment Change along with the Unemployment Rate
- Oil traders will also await Tuesday’s and Wednesday’s inventories data release.
You will find this week’s the key news releases below (EST time zone). For your convenience, we broken them down per market to which they are particularly important so that you know what to pay extra attention to if you have or plan to have positions in one of them. Moreover, we put particularly important news in bold. This kind of news is what is more likely to trigger volatile movements. The news that are not in bold usually don’t result in bigger intraday moves, so unless one is engaging in a particularly active form of day trading, it might be best to focus on the news that we put in bold. Of course, you are free to use the below indications as you see fit. As far as we are concerned, we are usually not engaging in any day trading during days with “bold” events on a given market. However, in case of more medium-term trades, we usually choose to be aware of the increased intraday volatility, but not change the currently opened position.
Our Market News Report consists of two different time-related perspectives. The investors’ perspective is only suitable for the long-term investments. The single economic data releases rarely cause major outlook changes. Hence, we will only see a handful of bold markings every week. On the other hand, the traders’ perspective is for traders and day-traders, because the assets’ prices are likely to react on a single piece of economic data. So, there will be a lot more bold markings on potentially market-moving news every week.
Investors’ Perspective
Gold, Silver, and Mining Stocks
Wednesday, May 13
- 9:00 a.m. U.S. - Fed Chair Powell Speech
Friday, May 15
- 8:30 a.m. U.S. - Retail Sales m/m, Core Retail Sales m/m
Crude Oil
Tuesday, May 12
- 4:30 p.m. U.S. - API Weekly Crude Oil Stock
Wednesday, May 13
- 9:00 a.m. U.S. - Fed Chair Powell Speech
- 10:30 a.m. U.S. - Crude Oil Inventories
Friday, May 15
- 8:30 a.m. U.S. - Retail Sales m/m, Core Retail Sales m/m
Stock Markets
Wednesday, May 13
- 9:00 a.m. U.S. - Fed Chair Powell Speech
Friday, May 15
- 8:30 a.m. U.S. - Retail Sales m/m, Core Retail Sales m/m
EUR/USD
Wednesday, May 13
- 9:00 a.m. U.S. - Fed Chair Powell Speech
Friday, May 15
- 2:00 a.m. Eurozone - German Preliminary GDP q/q
- 8:30 a.m. U.S. - Retail Sales m/m, Core Retail Sales m/m
USD/JPY
Wednesday, May 13
- 9:00 a.m. U.S. - Fed Chair Powell Speech
GBP/USD
Wednesday, May 13
- 2:00 a.m. U.K. - Preliminary GDP q/q
- 9:00 a.m. U.S. - Fed Chair Powell Speech
Thursday, May 14
- 6:30 a.m. U.K. - BOE Governor Bailey Speech
USD/CAD
Wednesday, May 13
- 9:00 a.m. U.S. - Fed Chair Powell Speech
Thursday, May 14
- 10:30 a.m. Canada - BOC Governor Poloz Speech
Friday, May 15
- 8:30 a.m. U.S. - Retail Sales m/m, Core Retail Sales m/m
AUD/USD
Wednesday, May 13
- 9:00 a.m. U.S. - Fed Chair Powell Speech
- 9:30 p.m. Australia - Employment Change, Unemployment Rate
Summing up, the financial markets will likely continue to react to news about globally spreading coronavirus in the near future. However, if you’re an investor and not a trader, you should pay extra attention toWednesday’s Fed Chair Powell speech and Friday’s U.S. Retail Sales release. In addition, on Wednesday there will be some quite important data releases from Australia and the U.K.