Economic events to monitor in week 40

Here's what to watch for in Week 40.

Monday, September 30

The week kicks off with China's Manufacturing Purchasing Managers' Index (PMI) released at 01:00 GMT. The previous figure stood at 50.5, with forecasts anticipating a slight uptick to 50.8. A higher-than-expected PMI would indicate expansion in China's manufacturing sector, potentially boosting global equity markets and lifting commodity prices due to anticipated increased demand.

Currencies closely tied to China's economy, such as the Australian and New Zealand dollars, might strengthen. Traders should watch for headlines like "China's Manufacturing Growth Accelerates, Lifting Global Market Sentiment" or "Stronger Chinese PMI Signals Economic Resilience Amid Global Uncertainties.

Tuesday, October 1

On Tuesday, attention shifts to the Eurozone with the release of the Consumer Price Index (CPI) year-over-year figures for September at 09:00 GMT. The previous CPI was recorded at 3.1%, with forecasts suggesting a decrease to 2.9%. A lower inflation rate could weaken the euro as it may reduce pressure on the European Central Bank to raise interest rates.

European bond yields might decline due to expectations of prolonged accommodative monetary policy. expect Eurozone inflation easing, ECB facing less pressure to tighten policies, and declining CPI in Eurozone sparking debate over economic recovery pace.

Wednesday, October 2

Midweek, the United States takes center stage with the ADP Nonfarm Employment Change data release at 12:15 GMT. The previous month saw an increase of 180,000 jobs, with forecasts predicting a slight dip to 175,000. Any significant deviation from expectations could cause US dollar volatility. Strong employment figures may bolster US stock markets, signaling economic strength.

Additionally, the Federal Reserve Chair is scheduled to hold a press conference at 18:00 GMT. Traders will closely scrutinize remarks for hints about future interest rate moves. Unexpected statements could lead to sharp reactions across various asset classes. Look out for private sector job growth ahead of key nonfarm payrolls.

Thursday, October 3

The focus returns to Europe with the UK's Services PMI released at 08:30 GMT. The previous figure was 51.0, with forecasts suggesting a slight decline to 50.5. A lower PMI could pressure the British pound amid concerns over economic slowdown and may weigh on UK equities, particularly the FTSE 100 Index. Anticipate the UK services sector slowing, more economic concerns, and Sterling sliping as services PMI falls short of expectations.

Friday, October 4

The week culminates with the highly anticipated US Nonfarm Payrolls report at 12:30 GMT. The previous month saw job growth of 200,000, with forecasts at 195,000. Significant deviations can cause fluctuations in the US dollar against major currencies. Weak employment data may boost gold prices as investors seek safe-haven assets. 

North of the border, Canada will release its Employment Change figures in concert, which expected to show an increase of 18,000 jobs from the previous 15,000. Positive data could strengthen the Canadian dollar and influence energy markets due to Canada's role as a major oil producer. Watch out for US job growth at a steady pace, unemployment rate unchanged, and Canadian job market beating expectations to lift the Loonie. All eyes on USDCAD

Conclusion

The upcoming week presents a blend of opportunities and challenges. By keeping a close eye on key economic events and remaining adaptable, traders can position themselves to capitalize on market movements. Staying informed and managing risks effectively will be paramount in approaching the markets with both confidence and caution.