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Economic Calendar - Top 5 Things to Watch This Week

EconomyAug 09, 2020 06:39AM ET
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© Reuters.

By Noreen Burke

Investing.com -- With stock markets now in the August doldrums investors this week will stay focused on the twin risks of heightened U.S.- China tensions and developments in Washington on the next round of coronavirus pandemic relief. Market participants will also be watching the dollar, which despite a rebound after Friday’s U.S. jobs report notched up its seventh straight weekly loss, the longest such streak in a decade. On the economic calendar, Thursday will bring the weekly jobless claims numbers, followed by retail sales figures for July on Friday. China is also to release a deluge of what will be closely watched economic data and earnings season will enter the final stretch. Here’s what you need to know to start your week.

  1. Double trouble

After failing to reach a deal with the U.S. Congress for a fresh round of coronavirus pandemic relief, President Donald Trump on Saturday signed a series of executive orders aimed at bolstering the hard-hit economy.

However, details on how the measures could be funded remain unclear and Democrats have already warned that such executive orders are legally dubious and would likely be challenged in court.

Uncertainty over fresh stimulus measures coincides with a renewed deterioration in ties between Washington and Beijing. Last week Trump unveiled sweeping bans on Chinese tech firms TikTok and Tencent, escalating a high-stakes confrontation over the future of the global tech industry.

Uncertainty associated with the dual risks will likely continue to act as a dampener on market sentiment, analysts said.

  1. Dollar weakness

The U.S. Dollar bounced on Friday after jobs numbers for July helped ease some investor worries on the U.S. labor market, but the currency logged a seventh straight week of declines.

While the U.S. economy added a slightly larger than forecast 1.76 million jobs last month it was still sharply lower than the record 4.8 million in June.

Sentiment has turned against the greenback due to a combination of rising U.S. coronavirus infections, a steady decline in Treasury yields, and a lack of consensus in Washington over additional stimulus.

Analysts say the dollar will continue to fall, particularly against the euro, the yen and Swiss franc, as expectations for a V-shaped recovery from the pandemic fades and investors take a more sanguine view of markets.

"I see further dollar weakness," said Michael McCarthy, chief market strategist at CMC Markets in Sydney.

"Optimism for an economic recovery is not backed up by the data. Safe-havens are very high, but stocks are also high, which doesn't make sense. The party has to end at some point."

  1. U.S. economic data

Data this week covers July so should remain largely upbeat, with Friday’s reports on industrial production and retail sales expected to show that the recovery from lockdown measures continued. A separate report on preliminary consumer sentiment for August will offer insight into whether the economy can continue to recover amid the pandemic.

Ahead of that, Thursday’s weekly report on initial jobless claims will show whether job losses continued their decline after last week’s figures showed the lowest weekly total since late March when layoffs around the U.S. exploded due to statewide lockdowns.

Wednesday’s consumer price inflation data will also be in the spotlight amid expectations that inflation will eventually start to creep higher on the back of a weaker dollar and the bloated budget deficit. U.S. CPI rebounded in June after three straight monthly declines.

  1. China data dump

China, the first country to be struck by the pandemic is set to release a raft of economic data this week with investors looking for signs that the recovery in the world's second-largest economy can be sustained.

Data on Friday is expected to show that industrial production remained steady last month while retail sales are expected to return to positive territory after contracting. The economic calendar also features updates on fixed investment, consumer and home price inflation, along with monetary and lending indicators.

Meanwhile, senior U.S. and Chinese officials will review the implementation of their Phase 1 trade deal during a video conference on Saturday.

  1. Earnings wind down

Earnings season is entering the final stretch and some of the bigger names reporting this week include Marriott International (NASDAQ:MAR), Occidental Petroleum (NYSE:OXY), Tilray (NASDAQ:TLRY), Canopy Growth (NYSE:CGC), SeaWorld (NYSE:SEAS) and Barrick Gold (NYSE:GOLD) on Monday. Softbank (OTC:SFTBY) is due to report on Tuesday, followed by Cisco Systems (NASDAQ:CSCO) and Lyft (NASDAQ:LYFT) on Wednesday. Coach parent company Tapestry (NYSE:TPR) and Applied Materials (NASDAQ:AMAT) are among the names to report on Thursday.

With the second-quarter corporate earnings season largely over, about 82% of S&P 500 companies that have reported so far have beaten dramatically lowered estimates, with earnings on average coming in 22.5% above expectations, the highest on record according to Reuters data.

--Reuters contributed to this report

Economic Calendar - Top 5 Things to Watch This Week
 

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Comments (17)
Kerstin Haraldsdotter
Kerstin Haraldsdotter Aug 10, 2020 4:50AM ET
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How can you allow these ads on BTC when you know they are scamcompanies This lowers my trust to you really
Lukhangele Nombona
Lukhangele Nombona Aug 09, 2020 7:09PM ET
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are we no trade
Francis Nwafor
Francis Nwafor Aug 09, 2020 6:08PM ET
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can anyone analyze this stimulus parckage for Americans next week ie are we expecting a deal or no deal please .
Show previous replies (2)
Jurgen Daub
Jurgen Daub Aug 09, 2020 6:08PM ET
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dity piece of deception to the american people for own profit as usual. wondering who will fall in the trap.....
Joseph Amabile
Joseph Amabile Aug 09, 2020 6:08PM ET
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Zack Harding well played Potus
Zack Harding
Zack Harding Aug 09, 2020 6:08PM ET
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Jurgen Daub ...no more deception than the 2 Trillion the Democrats are trying to force down our throats...95% of that, the Anerican people will never see, just another pork package.
Zack Harding
Zack Harding Aug 09, 2020 6:08PM ET
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Jurgen Daub , Trump was a Democrat most his life...fiscally he still is. He just woke up to the asinine progressive agenda destroying life and family. This should surprise nobody. It is like having Clinton in office again with much more experience and spine.
john kelly
john kelly Aug 09, 2020 6:08PM ET
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Zack Harding  says who?You.......Bwahahahahah.....Please.
Gary Friauf
Gary Friauf Aug 09, 2020 5:00PM ET
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I believe the dollar has put in a floor and will recover this week. I plan on opening a short futures position in the EUR/USD at the open tonight.
Bernardo Ottoni
Bernardo Ottoni Aug 09, 2020 5:00PM ET
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Yup, trade agaisnt whatever these articles say and you should be golden 99% of the time.
Jay West
Jay West Aug 09, 2020 4:40PM ET
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Market up monday thumbs up. Market down monday thumbs down.
Zack Harding
Zack Harding Aug 09, 2020 4:40PM ET
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Lol, 8-8. Current futures are down.
khalil Rad
khalil Rad Aug 09, 2020 4:14PM ET
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I totally disagree with your forecast for the dollar. unfortunately, some companies earn money to give wrong information
Camaro Camero
Camaro Aug 09, 2020 3:59PM ET
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It's going to be a GREAT week! I can't wait for Monday.
Jay West
Jay West Aug 09, 2020 3:59PM ET
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What is your justification? I am hoping for the same.
Zack Harding
Zack Harding Aug 09, 2020 3:59PM ET
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Jay West ,He has a tickle in his belly
AIT Crypto
AIT Crypto Aug 09, 2020 2:22PM ET
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Conclusively dollar is coming down this week right?
Jerry Lubitsky
Jerry Lubitsky Aug 09, 2020 11:06AM ET
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Keep an eye on ChinaE V auto stocks.They may surprise
NCT PRODUCTION
NCT PRODUCTION Aug 09, 2020 10:43AM ET
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What is gold how much reaching
Ellias Motau
Ellias Motau Aug 09, 2020 10:29AM ET
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The dollar strength on 15 minutes charts in all major pairs shows signs of recovery. When one says dollar will continue to fall, does that means retail traiders should prepare themselves to trade against the trend this week?
Show previous replies (2)
Ludwig Ban Veetoven
Ludwig Ban Veetoven Aug 09, 2020 10:29AM ET
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interesting question I'm on a sell on the Eur/USD pair,so it will be interesting to see what will happen
Ludwig Ban Veetoven
Ludwig Ban Veetoven Aug 09, 2020 10:29AM ET
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Ludwig Ban Veetoven copy paste accident 🤦🏽‍♂️ i meant to comment on Ellias post. BUT before the market closed this week i had shorted S&P500. My prediction was that it will make a huge move to the downside. If my trade starts winning then theoretically yours should be losing if you’re selling the euro against the dollar. We will see what happens 😬
Ludwig Ban Veetoven
Ludwig Ban Veetoven Aug 09, 2020 10:29AM ET
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jj mm
jj mm Aug 09, 2020 10:29AM ET
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eurusd next months heading 1.36
Kelvin Kahiu
Kelvin Kahiu Aug 09, 2020 10:29AM ET
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Friday was just a correction .the dolar is still weak sell off !!!✔️
corona killer
corona killer Aug 09, 2020 10:13AM ET
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Terrible article, noreen. You are better than this.
AZ TECHNOLOGY
AZ TECHNOLOGY Aug 09, 2020 10:13AM ET
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Es verdad que el dolar caera inminentemente pero no este año , para el 2021 es mas posible. haciendo que el eur u otra moneda fuerte (quiza aquella moneda vitual que este regulada) pueda servir de apoyo a las instituciones financieras
Jay West
Jay West Aug 09, 2020 10:13AM ET
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At minimum, use Google translator to copy and paste.
max cernovic
max cernovic Aug 09, 2020 9:13AM ET
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well they say next week market will be open and we all can have both ways market
Kwabena Sonful
Kwabena Sonful Aug 09, 2020 8:00AM ET
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It's obvious at this point : the news is meant to control how you think and not the reality. Let's see how papa dollar plays out against major currencies.
New Jazenevd
New Jazenevd Aug 09, 2020 7:50AM ET
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Doldrums? Market makes all-time highs. Can we get more of these "doldrums"? This site could pay more attention to providing market relevant information rather than politically motivated biases.
mike russell
mike russell Aug 09, 2020 7:50AM ET
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Amen to that!
Gina Watson
krakatoakt Aug 09, 2020 7:50AM ET
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New Jazenevd, the market and politics have always been hand in hand. When the government reacts to something the market reacts. Just look at how the market reacts to job numbers, or world events. These 4 executive orders may have some impact on Monday, or may not...depends on how people perceive them. IMO they the executive orders are not legal at this time because they are just EO's not law. They can be stopped.  Look at how thing would be in the fiture should they be enacted. No Medicare, No taxes from workers to pay into SSN funds- what will happen to the elderly without these things? Who will suffer?  Will all the senior citizens take their money from the stock market to live on...this is how politics play into markets
Jay West
Jay West Aug 09, 2020 7:50AM ET
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Gina Watson you are so misinformed. Presently the senior citizens will keep receiving any and all benefits. This is a very temporary fix and would not be reflected until years and years ahead. He is not taking with her benefits only the taxes that employers and employees have to pay into for a temporary boost to corporations and consumer spending. And as far as executive orders take a look at what state governors have done with their executive orders. They are allowed to have people arrested if they break these executive orders. Take a look at businesses that I’ve tried to re-open in rebellion of executive orders. Owners have been arrested and locks have been changed. Get educated.
Jay West
Jay West Aug 09, 2020 7:50AM ET
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Sorry for the spelling and grammar errors in my speech to text statements but I think you get the point.
Percy Basil
Percy Basil Aug 09, 2020 7:12AM ET
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Amazing
 
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