Weekly Financial Market events review

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The new trading week, which is the twenty-fifth one in 2019, is currently showing a trend of a slight weakening of the US dollar against other world currencies, and in particular the Euro (EUR). During the European trading morning on June 17, 2019, at 8:19 CET, the EUR/USD currency pair traded at a mutual exchange rate of US$1.1212 per EUR, with a daily depreciation of USD of – 0,04% against the Euro on the Forex market.

Investors expect the following major events that could affect the trend of global markets:

 

Annual EU Wage Development

Wage costs show a year-on-year change in the average earnings of EU employees in the given month compared to the same month of the previous year. The calculation includes the basic salary paid by the employer and does not include bonuses and additional payments. Wage growth is a measure of inflation in the Eurozone. The index provides an outlook for future consumer spending. The increase of the indicator can contribute to the EUR growth. The data of this index will be published on Monday, June 17, 2019 at 10:00 CET and a slight decline from 2.3 to 2.2 points is expected.

Monthly Consumer Price Index in the UK

The monthly Consumer Price Index (CPI) reflects changes in prices of consumer goods and services in a given month compared to the previous one. The index shows changes in prices from a consumer perspective and characterizes inflation dynamics. Its growth can have a positive impact on the pound quotations. The value of the index will be published on Wednesday, June 19, 2019 at 10:30 CET and is expected to decrease from the current 0.6% to 0.4%.

Federal Reserve System (FED) Rate Change Decision

FED decides on the interest rates on a predetermined date when members of the Federal Free Market Committee (FOMC) vote on the short-term interest rates for loans and commercial bank loans. Increasing rates can have a positive effect on the US dollar, while a decline can affect it negatively. If the rate remains unchanged, analysts will evaluate the “pro” and “against” votes and discuss the voting statements after the minutes of the meeting have been published to predict the results of the next meeting. FOMC members will traditionally meet at a two-day meeting on Tuesday and Wednesday, June 18 and June 19, 2019, with FOMC officials announcing their decisions at a press conference on Wednesday, June 19, 2019 at 19:00 CET.

 Monthly Bank of England Monetary Policy Summary

A summary of the Bank of England (BoE) Monetary Policy Commission (MPC) meeting is issued eight times a year, two weeks after each MPC meeting. It allows an analysis of the Committee’s debate on the UK monetary policy. MPC members’ opinion allows forecasting of a decrease or an increase in the Bank of England’s interest rate during the next session, as well as providing an overview of the potential release of new money to the economy and other important changes. The report will be released on Thursday 20 June, 2019 at 14:00 CET.

EU Leaders Summit

The Leaders’ summit is a regular two-day meeting of EU leaders and senior officials. During the event press conferences and open meetings are held. Depending on the events discussed at the summit, as well as the political and economic rhetoric of the participants, Euro quotations may change for a short period of time. The meeting will be held on Thursday 20 June and Friday 21 June, 2019.

Monthly Purchasing Managers’ Index in the EU

Purchasing Managers’ Index (PMI) indicates the economic health of the manufacturing factor in a given month. The index is used to assess the development of the industrial sector in the Eurozone. Values over 50 can have a positive effect on the Euro quotations. The data of this index will be released on Friday, June 21, 2019 at 10:00 CET and a slight increase from 47.7 points to 47.9 points is expected.

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