January 28, 2023

Holiday-shortened week focus on Fed minutes

LQDFXperts Features | Ηoliday-shortened week focus on Fed minutes

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A holiday-shortened trading week starts with investors looking to Fed Minutes for any indication that the pace of rate hikes may slow.

The Fed is set to publish the minutes of its November meeting on Wednesday. 

Fed policymakers have signalled that the central bank could shift to smaller rate hikes next month. Investors expect efforts to avoid tightening more than necessary and sending the economy into recession.

The most important shopping period of the year kicks off on Friday in what will be a crucial test for retailers. 

The upcoming Black Friday may give investors greater insight into the extent that consumers are opening their wallets.

The day after the US Thanksgiving holiday is traditionally one of the year’s biggest shopping days.

With Black Friday ahead, investors bet shares of beaten-down consumer stocks will benefit if inflation keeps falling and retail sales stay strong.

Recent data showed that U.S. retail sales rose more than expected in October. 

Consumer spending accounts for more than two-thirds of U.S. economic activity.

Holiday-shortened week ending with Black Friday – What else?

The recent bear market rally is likely on hold due to a holiday-shortened trading week. The holiday-shortened week may see increased volatility and lower volumes as traders take time off.

Wednesday will be the most important day of the week regarding data and risk events.

The latest world economic forecasts from OECD are due on Tuesday.

Global PMI data on Wednesday will give an important insight into the world economy’s health. 

Investors will anticipate PMI data from the Eurozone, the U.K. and the U.S. for the first indications of early Q4 performance worldwide. 

In most European countries, PMIs are below the 50 marker that separates expansion from contraction.

Central bank decision in the UK will also be unveiled on Thursday. The market expects a 75-bps hike by the Bank of England to 3.0%.

The economic calendar for the coming week also includes the Richmond Fed manufacturing index, initial jobless claims and durable goods orders for October.

For more economic events, watch our Economic Calendar

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