Weekly Market Review – August 29 – September 2 2016
The NFP is this week’s main event
Janet Yellen’s speech in Jackson Hole was last week’s main event. She mentioned the case for raising US interest rates has strengthened in recent months because of improvements in the labor market and expectations for moderate economic growth.
Data on orders for durable goods in US provided some support for pair. Most analysts believe that the US dollar will continue to grow until the next US Fed meeting, scheduled for the end of September.
This week will feature important data on inflation in Germany and Eurozone, scheduled for Tuesday and Wednesday respectively.
This week’s main event is Friday’s NFP report 12:30 GMT.
Last week major US stock indexes closed below zero, showing a downwards trend. This occurred thanks to a floundering oil market. Additionally, after the quarterly reporting season, investors are turning their attention to the prospects of a possible rate hike.
Major European stock exchanges trended negatively last week, following the general dynamics of the global markets. Traders were disappointed by measures by central banks.
This week’s dynamics will depend on European economic data. Additionally, Chinese Manufacturing PMI will impact the markets.
Brent Oil, Daily
Last week oil showed almost zero change, with traders paying a lot of attention to data on US stocks. OPEC countries are still discussing potentially freezing production volumes. Meanwhile, according to the Baker Hughes, the number of active drilling rigs remained unchanged.
This week the oil market will entirely depend on the US currency.