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5 Things to Watch on the Economic Calendar This Week

Published 05/22/2016, 04:05 AM
Updated 05/22/2016, 10:28 AM
© Reuters.  5 Things to Watch on the Economic Calendar In The Week Ahead

Investing.com - In the week ahead, investors will continue to focus on U.S. economic reports to gauge if the world's largest economy is strong enough to withstand further rate hikes in 2016, with Friday’s revised first quarter growth data in the spotlight.

In addition, there are a handful of Fed speakers on tap, including comments by Fed Chair Yellen on Friday, as traders search for more clues on the timing of the next U.S. rate hike.

Meanwhile, traders will be looking to Monday’s survey data on euro zone business activity for fresh indications on the health of the region’s economy.

Elsewhere, market participants will be looking ahead to U.K. growth data for further indications on the strength of the economy amid uncertainty over a June referendum on whether or not Britain should stay in the European Union.

Currency traders will also be awaiting a central bank decision in Canada on Wednesday.

Ahead of the coming week, Investing.com has compiled a list of the five biggest events on the economic calendar that are most likely to affect the markets.

1. Revised U.S. first quarter growth

The U.S. is to release revised figures on first quarter economic growth at 12:30GMT, or 8:30AM, Friday. The data is expected to show that the economy expanded by 0.9% in the first three months of this year, upwardly revised from a preliminary estimate of 0.5%.

Besides the GDP report, the U.S. is to produce data on manufacturing activity, new home sales, durable goods orders, weekly jobless claims, pending home sales as well as revised consumer sentiment numbers.

2. Fed speakers

Market players will be paying attention to a handful of FOMC member speeches during the week to further judge the balance of opinion among policymakers on the prospect of further rate hikes.

On Monday, St. Louis Fed President James Bullard, San Francisco Fed President John Williams and Philadelphia Fed President Patrick Harker are scheduled to speak throughout the day.

On Wednesday, Philadelphia Fed's Harker, Minneapolis Fed President Neel Kashkari and Dallas Fed President Rob Kaplan are on tap.

St. Louis Fed's Bullard and Fed Governor Jerome Powell speak on Thursday.

Finally, Fed Chair Janet Yellen is scheduled to participate in a panel discussion at Harvard University on Friday.

Odds of a Fed rate hike for June stood at about 30% on Friday, up from just 4% a week earlier, according to futures markets. July odds were at about 50%.

3. Flash euro zone PMIs for May

The euro zone is to publish preliminary data on manufacturing and service sector activity for May at 08:00GMT, or 4:00AM ET, on Monday, amid expectations for a modest improvement.

Ahead of the euro zone PMI's, France and Germany will release their own PMI reports at 07:00GMT and 07:30GMT respectively.

Meanwhile, a pair of reports on March German business sentiment will also be in focus. The ZEW Institute will publish its German business climate index at 09:00GMT on Tuesday, while the Ifo research institute will release its own report at 08:00GMT on Wednesday.

4. U.K. Q1 GDP - second estimate

The Office for National Statistics is to produce revised data on U.K. economic growth for the first quarter at 08:30GMT, or 4:30AM ET, on Thursday. The report is forecast to reveal the economy grew 0.4% in the three months ended March 31, unchanged from a preliminary estimate.

5. Bank of Canada rate decision

The Bank of Canada's latest interest rate decision is due at 14:00GMT, or 10:00AM ET, on Wednesday, with most experts expecting the central bank to stand pat on rates.

Some market analysts expect BOC Governor Stephen Poloz to strike a more dovish tone, partly due to a still-raging wildfire in Alberta that has disrupted oil production and recent data which pointed to slowing growth.

Stay up-to-date on all of this week's economic events by visiting: http://www.investing.com/economic-calendar/

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