ForexBall Education: Overview of major market moving events for the upcoming week

Author Haresh Menghani Category ForexBall News 23 Jun 2015 Updated at 10:58 CET
Last week the US Dollar witnessed yet another week of continued selling pressure against most major currencies, marking a third consecutive week of declines for the overall US Dollar Index (I.USDX). Last week’s FOMC meeting outcome and commentary, which was at the center stage in determining the near-term US Dollar direction, provided little indication on the beginning of Fed rate-hike cycle. Meanwhile, mixed US economic data, released last week, pointed towards a continuing economic recovery at a modest pace, thus increasing the possibilities of an interest rate hike during the current calendar year. 
Going forward, apart from this week’s economic data, investors will continue monitoring developments over Greece crisis, which might continue fueling volatility across financial markets. Let's have a brief overview of some important market moving events scheduled during the course of upcoming week.
US Housing Data 
This week's US economic calendar kicks-off with the US housing data, featuring the release of Existing Home Sales on Monday and New Home Sales on Tuesday. In April existing home sales data printed lower than expected reading but managed to hold above 5.00 million units annual rate mark. In May, existing home sales are expected to have edged up to an annualized rate of 5.27 million units, confirming continuing growth in the US housing market. Meanwhile, data pertaining to sales of new homes is also expected to improve marginally with consensus estimating the sales to reach seasonally adjusted annual pace of 524,000 units.
Durable Goods Orders 
Investors will also have a look at the performance of US manufacturing sector with the release of durable goods orders for the month of May and is scheduled for release on Tuesday. In April, core durable goods orders, that excludes transportation items, edged higher despite of a sharp decline in orders for transportation items. For the month of May, analysts are expecting a further fall of 0.6% in durable goods orders while orders for core durable goods are expected to have picked up and are forecasted to rise 0.6%.
Final US GDP Print
The key highlight from this week's US economic calendar is the final version of US GDP growth rate for the first quarter of 2015, scheduled for release on Wednesday. According to the Commerce Department's Preliminary estimates (second estimate), the US economy contracted by 0.7% annualized pace in the first-quarter of 2015 but economists this time are expecting the figure to be revised higher, with the consensus estimating the data to show economy contracting by only 0.2%. A positive number would certainly be a big surprise, spurring some big short-covering moves for the US Dollar.
Euro-zone PMI Readings
From the Euro-zone, apart from developments over a possible deal between Greece and its creditors from European Union leaders’ emergency meeting on Monday, investors will be particularly focusing on the release of PMI data, a leading indicator of economic health, for both manufacturing and services sector. PMI reading from Euro-zone's two largest economies, France and Germany, along with the composite Euro-zone PMI data for the month of June are scheduled for release on Tuesday. Except for the French manufacturing PMI, which is expected to move back to expansion territory for the first time since April 2014, all other PMI readings are expected to continue showing modest expansion for the month of June.
In addition to these, German Ifo business climate and Gfk consumer climate, scheduled for release on Wednesday and Thursday, could also possibly affect the movement of the common currency, Euro.
Chinese Manufacturing PMI
Investors will also be focusing on the release of the flash version of manufacturing PMI data from China, also scheduled for release on Tuesday. The flash version of HSBC's Chinese manufacturing data for the month of June is expected to show contracting manufacturing activity for fourth consecutive month. Being the largest manufacturer of the world, Chinese manufacturing data bears some meaningful impact on the Forex market. Moreover, being the biggest consumer of commodities, deteriorating Chinese manufacturing activity is likely to exert pressure on commodity currencies, especially the Australian Dollar (AUD), which happens to be China's largest trading partner.
BoJ Monetary Policy Meeting Minutes and Japanese Core CPI
The minutes from BoJ's latest policy meeting, which reflects the prevailing economic conditions that influenced central banks decision, is scheduled for release on Wednesday. Considering BoJ's willingness to continue with its easing monetary policy, the minutes are likely to be a non-event for the Forex market. However, core CPI data from Tokyo, which is Japan's most populated city, is likely to garner some spotlight as it is released a month earlier than the National CPI. Tokyo Core CPI for the month of June, scheduled for release on Friday, is expected register a minor up-tick by 0.1% on year-on-year basis.
Given the recent fall for the US Dollar, disappointing economic releases from other parts of the global economy and (or) mounting Greek crisis might prove to be a positive trigger for the US Dollar recovery.

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