Upcoming Economic Events & Forecast | 18th July, 2022

BofE MPC Member Michael Saunders Speaks

• Date & Time: Monday 18th July
• Influenced Assets: GBP
• Previous Figures: N/A
• Prediction: N/A

Why Our Traders Care: The Bank of England’s 🏛️ Monetary Policy Committee member, Michael Saunders is set to speak 🎙️ on Monday at the Resolution Foundation in London. At this meeting, BOE MPC members will get to vote 🗳️ on where to set the nation's key interest rates. These public engagements are often used to also drop clues 🗝️ regarding future monetary policy in which traders keep an eye out 👁️ to aid in their strategies. Just like the US and the Fed, if we see the UK increasing rates further, then we will see more signs of inflation which will affect cryptocurrency investors, especially those in the UK.

EU Final Consumer Price Index (CPI) y/y and Core CPI

• Date & Time: Tuesday 19th July, 12:00pm GMT+3
• Influenced Assets: EUR and global markets
• Previous Figures: 8.6% (core 3.7%)
• Prediction: 8.6% (core 3.7%)

Why Our Traders Care: Europe’s CPI and core CPI report 📋 is considered to be the most important inflation data as it is used as the central bank’s 🏛️ inflation target and consumer prices account for a majority of overall inflation. Rising prices 📈 will lead the central bank to raise the interest rates, to which as we have said above, can affect the crypto market.

The US Building Permits and Housing Starts Data

• Date & Time: Tuesday 19th July, 3:30pm GMT+3
• Influenced Assets: USD and global markets
• Previous Figures: 1.70 million (building) and 1.55 million (housing)
• Prediction: 1.69 million (building) and 1.60 million (housing)

Why Our Traders Care: The building permits data 🏗️ shows the annualised number of new residential building permits issued for the previous month and is a great gauge of future construction activity because getting a permit is one of the first steps in constructing a new building. The housing starts data 📋 shows the annualised number of new residential buildings that began construction in the previous month and is correlated to the building permits as of course, a permit must be issued before a house is constructed.

This data 📋 is a leading indicator of economic health because building construction produces a wide-reaching 🌊 ripple effect. For example, jobs are created for the construction workers, subcontractors and inspectors are hired, and various construction services are purchased by the builder; Hence why the economy looks for higher numbers every month.

Economic indicators are some of the most valuable tools investors can have in their arsenal. Trading using economic indicators can potentially help investors take advantage of past events, trends and predictions about the future of financial markets. Understanding these tools can help increase your investment returns.

The ETHCC 5 Conference

• Date & Time: Tuesday 19th July - 21st July
• Influenced Assets: ETH and other altcoins, especially within DeFi
• Previous Figures: N/A
• Prediction: N/a

Why Our Traders Care: The Ethereum Community Conference (EthCC) is the largest annual European Ethereum event focused on technology 💻 and community 👯. There will be three intense days of conferences, networking, and learning. Ethereum France (organisers) believes that sharing and transmitting knowledge is the most efficient way to develop a positive and fertile ecosystem. For this reason, EthCC covers many different subjects and addresses different levels of comprehension of blockchain technology, through conferences and workshops. This is great and bullish 🟢 for our traders as the more exposure and developments these communities have, the better for the long-term growth.

UK Consumer Price Index (CPI) y/y

• Date & Time: Wednesday 20th July, 9:00am GMT+3
• Influenced Assets: GBP
• Previous Figures: 9.1%
• Prediction: 9.3%

Why Our Traders Care: The CPI indicates the change in the price of goods and services purchased by consumers and is considered the 💂 UK's most important inflation data because it's used as the central bank's inflation target. Consumer prices account for a majority of overall inflation.

❗ Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates. Actual figures that are greater than the predicted figures are good for the currency. However, here, traders can look at this from the point of view of; if someone is struggling to pay for goods and services due to increasing prices, how much of their income will they actually invest in ‘riskier’ assets? 🤔

US Existing Home Sales

Date & Time: Wednesday 20th July, 5:00pm GMT+3 Influenced Assets: USD and global markets Previous Figures: 5.41 million Prediction: 5.4 million

Why Our Traders Care: The existing home sales 🏘️ measures the annualised number of residential buildings that were sold during the previous month (excluding new construction). Please note, whilst it is released as monthly data, it is reported in annualised format (giving a monthly figure x12).

This data is a leading indicator 💬 of economic health for the US because the sale of a home triggers a wide-reaching ripple effect. Eg: renovations are done by the new owners, a mortgage is sold by the financing bank, and brokers are paid to execute the transaction etc.

This is another piece of data investors and traders are particularly interested in as they can gauge the strength of the country's economy. This is the primary tool the ECB 🏛️ uses to communicate with investors about its monetary policy as it contains their decision on interest rates and comments about the economic conditions that influenced their decision. Most importantly, it discusses the economic outlook and offers clues on the outcome of future decisions which is what traders 🕵 focus on.

EU Monetary Policy Statement

• Date & Time: Thursday 21st July, 3:15pm GMT+3
• Influenced Assets: EURO
• Previous Figures: N/A
• Prediction: N/A

Why Our Traders Care: The Monetary Policy Statement ✍️ sets out how the Monetary Policy Committee will achieve its objectives. It has an assessment of current and projected future economic conditions 📈📉, including inflation and employment.

❗ Please take into account that the ECB usually changes the statement slightly at each release. It's these changes that traders 🕵 focus on.

De-Fi Summit

• Date & Time: Wednesday 20th to Thursday 21st July
• Influenced Assets: ETH and DeFi
• Previous Figures: N/A
• Prediction: N/A

Why Our Traders Care: The De-Fi Summit 🌄 is noted as a premier virtual summit that focuses on bringing builders and developers together in a connected space for 🌐 decentralised finance. Here, visitors will learn about the latest in DeFi through the best in the industry.

🟢 Just like the ETHCC 5 event we mentioned above, this is generally good and bullish for our traders as the more exposure and developments these communities have, the better for the long-term growth.

US Flash Services Purchasing Managers Index (PMI)

• Date & Time: Friday 22nd July, 4:45pm GMT+3
• Influenced Assets: USD and global markets
• Previous Figures: 52.7
• Prediction: 51.6

Why Our Traders Care: Flash services PMI is an early estimate of the Services Purchasing Managers' Index (PMI), designed to provide an accurate advanced indication of the final services PMI data.

This data is basically a leading indicator 🥇 of economic health as businesses react quickly to market conditions, and their purchasing managers hold the most current and relevant insight into the company's view of the economy. If we see an actual figure above ⤴️ the predicted, this is good for the US Dollar. Of course, as we have seen as of late, as the dollar index goes up, crypto tends to go in the opposite direction, so traders keep a keen eye out for this report. 👀

Australia, Japan, France, Germany, the UK, and the EU’s PMIs are also released on this day.

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