Financial
markets' participants will continue to monitor the latest developments of the
spread of the deadly Coronavirus and its impact on global markets.
As
for the most important economic reports, the most notably will be the Service
and Manufacturing Purchasing Managers Index released from a number of major
economies, which may indicate the negative impact of the spread of the Coronavirus
on key sectors.
U.S.
dollar
The
US dollar will remain under scrutiny, as investors will follow some important
economic data from the United States, with a reminder that the dollar has
benefited greatly in the recent period from concerns related to the spread of
the Coronavirus.
The
most important report is the preliminary composite purchasing managers for the
services and manufacturing sectors for March, which may indicate a widening
contraction to 40.8, compared to February's reading of 49.6.
Among
the most important reports issued this week will be the final fourth-quarter
GDP reading, which may confirm the steady pace of growth at 2.1 per cent annually,
which is the same as the final reading for the third quarter.
Another
very important report is the Durable Goods Orders, which may show a 0.7 percent
decrease in February after it recorded a 0.2 percent drop in January.
Data
on the housing sector, as well as personal spending and consumer confidence,
may receive some attention from investors.
Euro
The
euro is likely to be affected by some important economic data released from the
euro zone this week, which may give features about growth in the first quarter.
Investors
will focus on the preliminary composite manufacturing and services PMI in the
euro area, which could show a significant contraction to 39.2 in March from a
reading of 51.6 recorded in February.
In
the event of a significant deterioration in the PMI, this will increase concern
about the impact of the spread of the Corona virus on the Eurozone economy.
Accordingly, the single currency may come under more selling pressure.
Pound
Sterling
This
week, the UK will publish important reports related to Britain's major sectors and
inflation, which are expected to have a significant impact on the pound's movements.
The
preliminary PMI for the services and manufacturing sectors for March may
indicate a contraction of 44.4 in March, compared to the previous reading of
53.0 recorded in February, according to analysts' expectations for the
preliminary composite PMI that includes the three major sectors.
Analysts
expect the consumer price index, the measure of inflation preferred by the Bank
of England, to decelerate to 1.5% in February on an annualized basis from a 1.8%
recorded in January.
The monetary policy
meeting of the BOE may also be of great importance, as it may give updates on
the economic situation in Britain after the surprise monetary actions announced
by the bank last week to help the British economy face the negative effects
resulting from the spread of the Coronavirus.
