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5 Things You Need to Know Before the Market Opens

By:
Tom Chen
Updated: Feb 26, 2017, 13:03 UTC

If the previous week was in the hands of the Fed , the big event of the upcoming week will obviously be Donald Trump's speech in front of the congress.

The Week Ahead

The previous week provided us with more clarity, ironically, as a result of the Fed’s unclear meeting minutes protocol. Gold was the first to break out of its range, signals that markets uncertainty is increasing as the political instability across Europe add concerns into the markets.

Currently, the market trend is the strength of the US dollar and US/global share markets along with increasing concerns of the upcoming political and economical events.

If the previous week was in the hands of the Fed and the rate hike timing, the big event of the upcoming week will obviously be Donald Trump’s speech in front of the US congress.

Trump speech to Congress

On Tuesday at 21:00 GMT, the new president will deliver a speech in front of the congress. Markets will be closely watching for further details about the the new stimulus and tax programs.

Investors will also be listening to Trump’s comments regrading economic deregulation programs as his plans to deregulate the US economic institutions can further lift US stocks.

US Q4 (Second Estimate) GDP

On Tuesday 13:30 GMT, US fourth quarter GDP will be released. Growth is expected to be revised to 2.1% from previous 3.5%. The data can shed light on the US economic growth and indicate for the Fed’s next rate hike steps.

As Fed members are due to make policy speeches in the upcoming week, a good growth reading can add pressure on the Fed rate hike decision.

Australia Q4 GDP

The Australian GDP data will be published on Wednesday at 00:30 GMT. QoQ Growth is expected to rise to 0.7% from -0.5% a quarter earlier. YoY is expected to rise to 1.9% from 1.8%.

A good figure can push the Aussie further versus other currencies as the Australian economy strength continues.

UK Services PMI

On Friday at 9:30 GMT, UK services PMI will be released and expected to rise to 55.1 from 54.5.

After the Bank of England raised its growth forecast for 2018 & 2019, the activity index can approve the central bank economic growth forecasts.

Fed Members Speeches

The big question of financial markets is still in the air – the next rate hike timing. After the previous week meeting minutes hinted that the next rate hike is expected to be ‘fairly soon’, any Fed member comment can trigger the markets.

the biggest appearance will be from Fed’s chair Janet Yellen on Friday. Yellen will speak on the economy in front of the executives club of Chicago.

Be aware that any hawkish or dovish comment can add volatility to the markets.

Check out our real-time Economic Calendar

About the Author

Tom Chenauthor

Tom began trading currencies and commodities in 2005 which during this time he developed his approach and gained a strong understanding of the financial markets, macroeconomics, and geopolitics. He is an experienced writer with a wide knowledge of economics, politics and the financial markets.

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