Expect High Volatility Ahead Of Key Economic Events This Week
2022.09.19 10:53
Last week, critical data came out. in the US improved slightly in September, helped by lower gas prices. The actual preliminary reading rose to 59.5 this month, against the consensus prediction of 60.0, but up from 58.6 in August.
Additionally, the proved durable at 4.6% in September against 4.8% in August. Hence, it was a mixed picture, and the question remains the same. Is there any likelihood that the the interest rates on Sept. 21 to a full percentage or only three-quarters like the previous two meetings?
One possibility is that sentiment should rise further, with gas prices declining. So, the Fed should hike the rates only by 75 basis points on Wednesday. On the contrary, rising interest rates, recession concerns, and the labor market’s imminent softening could reduce the improvement in confidence.
The major U.S indices were trading lower with shedding -4.77%, -3.78%, and -5.77% last week. In Europe, similarly, the , and the EU fell below the analysts’ forecast, and the previous reading in August reached -61.9 and -60.7 from -55.3 and -54.9 respectively.
dropped -2.65% last week, although the facts with the issues in the flow of and the weakened indicate an increasing possibility for a recession in Europe than in the USA.
The Economic Calendar has interesting events lined up this week, including the . The RBA may not be that hawkish anymore, so may have issues recovering, especially with lower stocks.
Other key events apart from the hike in interest rates from the Fed are as follows: the U.S for September, the for September, the for September, the for September, the ECB President Lagarde speaking, the U.S (weekly), the US for September, the BOJ , the BOE , and the in Eurozone, Germany, Great Britain, and the US.
From a technical perspective, we think that the remains king as S&P 500 breaks the trendline support. The US yields also scream for that 3.5% breakout which can cause more fear across different markets, including cryptos.
S&P 500 Index daily chart.
