President Donald Trump is expected to sign another economic support package to the tune of $484 billion later today after the bill was ratified by a large Bipartisan majority in the House. This is the fourth bill to be passed and assented to by Mr President to tackle the impact of the pandemic in America. This one has brought the total relief package for Americans in this period to a staggering $3 trillion.

Another 4m individual filed for Jobless insurance last week, summing up to over 26m individuals in the last 5 weeks. American Labour market has grown immensely in the last 11 years but a coronavirus induced business closure wiped out all the gains within 5 weeks. The possibility of opening up businesses in some American states from next month is expected to halt this trend as more people are expected to get back to work.

The economic impact of COVID19 cannot be overemphasized, the balance sheet of Central Banks around the world are worsening as they put up measures to stabilise their respective country’s economy in the face of the global pandemic. Assets are losing value at a fast pace with the only exception being gold. The commodity has enjoyed some form of a bullish run before COVID19 and has been on an even stronger run since January edging closer to 52 weeks high. The commodity is edging closer to $1800 having opened the year around $1500.

The output from Oil-producing nations has outpaced demand as the impact of COVID19 on the economy continue to bite harder. Industries are grounded to a halt; aeroplanes are parked in hangars and highways are empty with no sight of respite in view. It is becoming increasingly more expensive to store oil as the world is running out of storage facilities and the staggering cost of shutting down oil well might force producers to pay buyers creating negative pricing. 

With this in mind, let's have a look at events that will further impact the direction of the financial market next week. 

Monday 27th April

No major economic data expected on this day. 

Tuesday 28th April

EUR: Spanish Unemployment Rate will be released by the National Statistics Institute by 8 am. The data will show the percentage of the country’s total workforce that is unemployed and are actively seeking employment. This data is envisaged to come out lower than forecast based on the current lockdown, factories are currently shut and cannot consider taking up new employees as some have even commenced downsizing their workforce. 

USD: The Conference Board Incorporation will release the CB Consumer Confidence by 3 PM. Investors are still more optimistic about the US economy being able to bounce back faster so the greenback is the world's dominant currency is expected to outperform other major currencies despite the increased expectations of a global recession.

Wednesday 29th April

AUD: CPI q/q and Trimmed Mean CPI q/q by 2:30 am. These crucial inflation data will be released by the Australian Bureau of labour statistics and Reserve Bank of Australia respectively. The market responds more to the Trimmed mean as it excludes 30% of the most volatile items.

USD: Advance GDP q/q and Advance GDP Price Index q/q to be released by the Bureau of Economic Analysis by 1:30 PM. The Fed uses the GDP price index as a primary instrument to assess inflation.

USD: Pending Home Sales m/m to be released by the National Association of Realtors by 3 pm. It measures the change in the number of homes under contract to be sold but still awaiting the closing transaction, excluding new construction. 

USD: FOMC Statement, and Federal Funds Rate slated for 7 pm. The Federal Reserve Bank had 2 emergency meetings last month with each resulting in a rate cut to stabilize the economy. They are not expected to further lower rate but investors will be waiting for fresh insight as to how the bank plans to stimulate and stabilize the economy.

Thursday 30th April 

EUR: French Flash GDP q/q, Spanish Flash GDP q/q by 6:30 am and 8 am respectively. While the Bloc’ Prelim Flash GDP q/q will be released by 10 am. 

EUR: Main Refinancing Rate and Monetary Policy Statement from the European Central Bank by 12:45 PM. The Bank announced a €750 billion Pandemic Emergency Purchase Programme (PEPP) last month to tackle the impact of COVID19 on the Bloc’ economy and investors are waiting for more insight from the bank. 

EUR: ECB President Christine Lagarde and her Vice Luis de Guindos will have an hour-long Press Conference after the rate statement by 1:30 PM. They will also respond to questions from the Press and their responses will provide a clearer view as to the reason behind the decision made in the statement.

USD: Unemployment Claims will be released by the Department of Labor by 1:30 PM. More than 26 Million individuals have filed for jobless claims in the last one month, acting as a primary gauge for the economic damage caused by the shutdown due to COVID19.

CAD: Gross Domestic Product (GDP m/m) will be released by Statistics Canada by 1:30 pm. The data measures the change in the inflation-adjusted value of all goods and services produced by the economy. 

Friday 1st May

USD: ISM Manufacturing PMI will be released by the Institute for Supply Management by 3 pm. 

*Time is GMT+1