Although the Turkish crisis will remain in the spotlight this week, even with holidays in Turkey, the calendar holds few interesting points. The FOMC minutes is the final stop ahead of the anticipated rate hike next month, the PMI data will provide a good update on the European economy and the fuel inventory report could be crucial for oil prices.
The FOMC minutes (Wednesday, 7pm BST)
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Open real account TRY DEMO Download mobile app Download mobile appThe US data has been mixed as of late. The latest NFP showed another stagnation of wage growth, ISM indices slid in July, housing starts were way off the mark and the Philly Fed tumbled in August. However, it’s not enough to derail expectations for the interest rate hike next month. Retail sales was strong and the economy seems to hold enough steam to withstand higher interest rates. Rather than seeking confirmation of the move (as this is nearly certain for investors), markets will be looking for clues regarding future moves. Affected markets: US500, Gold.
PMI indices in Europe (Thursday)
July brought a somewhat unexpected deterioration in the global economy. Is this a sign that Trade Wars already hurt growth? European PMI have been especially disappointing so far this year so it will be very interesting to see how they change in August. Markets assume stable readings of 55 points for the industrial and 54.4 points for services PMI. Affected markets: DE30, EURUSD.
The DOE report on inventories (Wednesday, 3:30pm BST)
Oil market is in an interesting spot between solid supply, especially in the US, and geopolitical concerns. On one hand president Trump is pushing other countries to stop buying oil from Iran, on the other the DOE report showed a huge build of oil inventories last week. Oil traders will be watching this week’s report for signs of a bigger directional move. Affected markets: OIL, OIL.WTI.
