Stay Ahead in the Market: Key Economic Events to Watch for CFD Traders
As we approach the first week of July 2024, several critical economic events in GMT+1 time zone are expected to impact the financial markets. CFD traders should pay close attention to these events as they could influence various financial derivatives. Below is a detailed analysis of each significant event, along with the specific instruments likely to be affected.
July 1, 2024 (Monday)
Canada Day (Canada, Public Holiday)
- Impact: Expect reduced liquidity in the Canadian Dollar (CAD) markets, including forex pairs like USD/CAD, EUR/CAD.
- Instruments Affected: Forex pairs involving CAD, Canadian stock indices, and commodities with significant exposure to Canada (e.g., crude oil).
Hong Kong Special Administrative Region Establishment Day (Hong Kong, Public Holiday)
- Impact: Expect reduced trading activity in markets related to Hong Kong, such as the Hang Seng Index.
- Instruments Affected: Hang Seng Index, HKD forex pairs, Hong Kong equities.
German CPI (MoM) (Germany, June)
- Impact: The German Consumer Price Index (CPI) measures the change in the price of goods and services from the consumer’s perspective. A higher-than-expected CPI can boost the Euro (EUR).
- Instruments Affected: EUR/USD, DAX 30, European stock indices.
S&P Global US Manufacturing PMI (US, June)
- Impact: This index provides a snapshot of the operating conditions in the US manufacturing sector. A higher PMI can strengthen the US Dollar (USD) and US equities.
- Instruments Affected: USD forex pairs (e.g., EUR/USD, USD/JPY), Dow Jones, S&P 500.
ISM Manufacturing PMI (US, June)
- Impact: This is a key indicator of the economic health of the manufacturing sector. A higher-than-expected PMI can lead to a stronger USD.
- Instruments Affected: USD forex pairs, US stock indices.
ISM Manufacturing Prices (US, June)
- Impact: This measures the change in the prices paid by manufacturers for goods and services. It can influence inflation expectations and USD strength.
- Instruments Affected: USD forex pairs, US stock indices.
July 2, 2024 (Tuesday)
Eurozone CPI (YoY) (Eurozone, June)
- Impact: The Eurozone CPI is a critical indicator of inflation. A higher-than-expected CPI can lead to a stronger Euro (EUR), affecting EUR forex pairs and European indices.
- Instruments Affected: EUR/USD, EUR/GBP, Euro Stoxx 50, DAX 30.
Fed Chair Powell Speaks (US)
- Impact: Comments from the Fed Chair can cause significant volatility in the markets, particularly if there are hints about future monetary policy.
- Instruments Affected: USD forex pairs, US stock indices, gold.
JOLTs Job Openings (US, May)
- Impact: This report shows the number of job openings in the US. More job openings can be a sign of economic strength and can positively affect the USD.
- Instruments Affected: USD forex pairs, US stock indices.
July 3, 2024 (Wednesday)
US Independence Day (US, Early Market Close at 13:00)
- Impact: With the US markets closing early, expect lower trading volumes and liquidity in US-related instruments, which can lead to increased volatility.
- Instruments Affected: All US forex pairs, US stock indices, commodities like gold and oil.
ADP Nonfarm Employment Change (US, June)
- Impact: This report measures the change in the number of employed people in the US, excluding the farming industry and government. A higher number can strengthen the USD.
- Instruments Affected: USD forex pairs, US stock indices.
Initial Jobless Claims (US)
- Impact: This measures the number of people filing for unemployment benefits for the first time. Lower claims are positive for the USD.
- Instruments Affected: USD forex pairs, US stock indices.
S&P Global Services PMI (US, June)
- Impact: This index measures the activity level of purchasing managers in the services sector. A higher PMI can boost the USD and US equities.
- Instruments Affected: USD forex pairs, US stock indices.
ISM Non-Manufacturing PMI (US, June)
- Impact: This index provides insights into the health of the services sector. A higher PMI can strengthen the USD.
- Instruments Affected: USD forex pairs, US stock indices.
ISM Non-Manufacturing Prices (US, June)
- Impact: This measures price changes in the non-manufacturing sector, which can influence inflation expectations and USD strength.
- Instruments Affected: USD forex pairs, US stock indices.
FOMC Meeting Minutes (US)
- Impact: The minutes provide detailed insights into the FOMC’s view on economic conditions and monetary policy. It can cause significant volatility in the USD and US markets.
- Instruments Affected: USD forex pairs, US stock indices, gold.
July 4, 2024 (Thursday)
US Independence Day (US, Public Holiday)
- Impact: With the US markets closed, expect lower trading volumes and liquidity in US-related instruments, which can lead to increased volatility in other markets.
- Instruments Affected: All US forex pairs, US stock indices, commodities like gold and oil.
July 5, 2024 (Friday)
Average Hourly Earnings (MoM) (US, June)
- Impact: This measures the change in the price businesses pay for labor, excluding the farming industry. Higher earnings can indicate rising inflation, which can strengthen the USD.
- Instruments Affected: USD forex pairs, US stock indices.
Nonfarm Payrolls (US, June)
- Impact: The NFP report is one of the most anticipated economic events, providing insights into the US labor market. Strong job growth can bolster the USD and US equities.
- Instruments Affected: USD forex pairs (e.g., EUR/USD, USD/JPY), Dow Jones, S&P 500, NASDAQ.
Unemployment Rate (US, June)
- Impact: This measures the percentage of the total workforce that is unemployed and actively seeking employment. A lower unemployment rate is positive for the USD.
- Instruments Affected: USD forex pairs, US stock indices.
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