It is all about Supply & Demand.
Last Wednesday Fed Chair, Jerome Powell made some comments about statistical improvements and that inflation is starting to decline. This gives markets hope that the Fed may not raise rates as aggressively going forward.
Supply and demand drives everything. If we start to see the PPI numbers continue to decline, then that may start to increase consumption in spending, which could mean that our goods and services are going to get cheaper in the future and demand would increase. That could be good for our markets.
• Producer Price Index numbers (PPI) announcement will be on Friday at 8:30am EST
Banks around the world are raising rates to help their economies but this could have a negative impact on their economies. This week, the following banks will be announcing their numbers:
• Reserve Bank of Australia – Monday at 10:30pm EST
• Bank of Canada – Wednesday at 10am EST
If you are trading the Australian or Canadian dollar, you may have some very wild swings.
There's 369 companies reporting this week:
Casey's General Store, AutoZone, Dave and Busters, Toll Brothers, GameStop, Campbell’s Soup, Lululemon, Brad.com, Costco, Oracle, Sienna, DocuSign and others.
As always, if you’re in the markets, make sure you have a trade plan.