The FOMC’s latest meeting provided additional volatility to the financial markets as the tone was slightly more dovish than expected. The aftermath of this meeting is likely to further linger in the financial markets in the coming days. On this week’s agenda in the U.S: GDP for Q4 – third estimate, core CPI, Yellen will give a speech, new home sales, durable goods, and UoM consumer sentiment. In Europe: Monetary developments report, ECB President Draghi testifies, German business and consumer climate. China’s manufacturing PMI (HSBC) will be released this week. So let’s review the main events and reports for the week of March 23rd to March 27th:
(All times GMT):
Monday, March 23rd
15:30 – ECB President Draghi Testifies: ECB President will testify on monetary policy before the European Parliament’s Economic and Monetary Affairs Committee, in Brussels;
02:45 – China Manufacturing PMI (flash): HSBC will publish its flash manufacturing PMI survey for March. Last month’s report regarding February 2015, the Manufacturing PMI rose to 50.1 – i.e. China’s manufacturing sectors is slowly growing. The current expectations are for this index to further rise to 50.5. If the PMI index keeps rising, it will suggest China’s manufacturing sector is expanding;
Tuesday, March 24th
09:00 – Flash German, French and Euro Zone Manufacturing PMI: In the last monthly update regarding February 2015, France’s PMI fell to 47.7 i.e. the manufacturing conditions are contracting at faster pace. Germany’s PMI inched down again to 50.9 – the industry is growing slower. This time, the estimates are for the German PMI to bounce back to 51.5. This news, in turn, may move the Euro;
09:30 – GB CPI: According to the recent report, the CPI dropped again to an annual rate of 0.3% in January. The current projections are for another decline in the CPI to 0.1% for February;
13:30 – U.S Core Consumer Price Index: This monthly report refer to the changes in the core consumer price index for February 2015. According to the U.S Bureau of Labor statistics, during January, the CPI fell by 0.7% the core CPI actually inched up by 0.2%; this report could impact the USD and influence the FOMC members to keep rates low;
15:00 – U.S. New Home Sales: This report will refer to February 2015; in the recent report (opens pdf; for January), the sales of new homes remained unchanged at an annual rate of 481,000; current estimates are for a drop to an annual rate of 472,000;
Wednesday, March 25th
09:00 – German Ifo Business Climate Index: The index consists of the difference (on a monthly basis) in the manufacturers, builders, wholesalers, and retailers in Germany as of March. In the February update, the business climate index inched up to 106.8 – the current expectations are that the index will rise to 107.4;
13:30 – U.S Core Durable Goods: This monthly report refers to February and will indicate the developments in U.S demand for commodities including oil and gas. As of January 2015, new orders of manufactured durable goods grew by 0.3%, month over month; current estimates are for a 0.4% gain;
15:30 – U.S Crude Oil Stockpiles Weekly Report: The Energy Information Administration will release its weekly report on the U.S oil and petroleum stockpiles for the week ending on March 20th;
Thursday, March 26th
09:00 – GfK German Consumer Climate: In the last monthly update, the index rose to 9.7. If the index continues to rise, this could suggest the German economy is improving;
09:00 – Euro Area Monetary Development: This monthly report will refer to the developments of the M3, M1 and loans to private sector in the Euro area as of February 2015. In the last January report, the annual growth rate for M3 grew to 4.1%; M1 also increased to 9%. Finally, the annual growth rate of loans to private sector reached -0.1%. This month’s estimates are that M3 will rally again to 4.3%;
09:30 – Great Britain Retail Sales: According to last month’s report, retail sales in Great Britain fell by 0.3%;
13:30 – U.S. Jobless Claims Weekly Report: This weekly report will pertain to the changes in the initial jobless claims for the week ending on March 20th; in the last report the jobless claims slightly grew to 291K;
15:30 – EIA U.S. Natural Gas Storage: The EIA weekly report of the U.S. natural gas market will pertain to the latest developments in natural gas production, storage, consumption and rates as of March 20th;
14:30 –BOC Governor Poloz Speaks: The Governor will hold a press conference at the Canada-UK Chamber of Commerce, in London;
Friday, March 27th
13:30 – Third U.S GDP 4Q 2014 Estimate: This will be the third and final estimate of U.S’s fourth quarter 2014 real GDP growth. In the last estimate the GDP rose by 2.2%. The current estimates are that the GDP grew by 2.4% in the past quarter – an upward revision. If the US gross domestic product shows a higher growth rate, this could positively impact not only the US dollar but also commodities prices;
14:55 – UoM Consumer Sentiment (revised): University of Michigan will release its revised consumer sentiment monthly report; this survey could provide information regarding the changes in U.S consumers’ sentiment; according to the past update, the sentiment index fell to 95.4;
20:45 –FOMC Chair Yellen Speaks: Following the latest FOMC meeting, FOMC Chair Janet Yellen will speak about monetary policy at the Federal Reserve Bank Conference titled “The New Normal for Monetary Policy,” at San Francisco. Audience questions expected;
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