Weekly Outlook, 16 - 20 August

Weekly Outlook, 16 - 20 August
Market Outlook
Ahura Chalki
Ahura Chalki
Published on: 15.08.2021 18:12 (UTC)
Post reading time: 2.79 min

Fed meeting minutes and Economic data! 

Last week ended with increasing US Producer Inflation and a sharp drop in Consumer expectations and estimates. On the other hand, China’s regulatory curbs remain in their place, while SP500 ended in a record high. In the week ahead, while still, we have these concerns with increasing Coronavirus infections all around the globe, economic data including GDP from Japan and Eurozone, Inflation from Canada, UK, and Japan, RBNZ meeting, and FOMC minutes will be in the spotlight. Let's take a look at the most important news and events of the week ahead. 


US retail sales - Tuesday

After Monday's Chinese data, another Retail sale of the week, which we have to follow closely, is the US Retails Sales on Tuesday. Same as China and many other economies, Retail sales response to man other factors sometimes increase, sometimes decreased; however, it seems US stimulus and cash checks were the main market drivers. These unemployment benefits will end in September. Retail sales directly depend on consumer confidence, which sharply decreased in Friday's Michigan university data. On the other hand, we had a summer holiday, which can support the sales, so while market participants are waiting for a 0.2% decrease, it is confusing and getting hard to predict what will happen! 





UK Unemployment - Tuesday

With fast improvement over the last few months unemployment rate fall back to 5.8% in June from earlier 7.2%. With easing the restriction, even with one month delay, the environment remains positive, especially with vaccination improvement and summer Holidays. The latest research of the Bank of England was more optimistic for the Labor market. Earlier this year, the outlook was much higher, and now it is decreased to a 5.2% unemployment rate for 2021 and 4.7% in the second quarter of 2022. With this outlook, British Footsie still seems to hold its overall uptrend.