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Investing.com – The Federal Reserve's monetary policy meeting will be a major issue for the markets of the coming week. Although the US central bank is not expected to take any interest rate measures, investors will be alert to signals of how patient it will be before raising borrowing costs again.
Policymakers pointed to two increases in 2019, but a recent wave of disappointing economic data in the US, as well as concerns over the US-China trade dispute, have announced that the Fed could suspend its rising cycle. rates this year.
Elsewhere, British Prime Minister Theresa May will again seek parliamentary approval for her draft agreement on the exit of the European Union. The unpopular agreement has already been heavily rejected twice, but the prospect of a long delay or even another referendum likely to overthrow Brexit could well overthrow eurosceptic conservatives.
An announcement of the Bank of England's monetary policy is also on the agenda, although it is highly unlikely that it will tip the situation from the policy point of view in the UK. Uncertainty surrounding Brexit.
Remaining in Europe, markets keep a close eye on PMI surveys of manufacturing and service sector activity, which should provide further indication of the region's economic situation at the end of the first quarter.
Investing.com has compiled, before the week ahead, a list of the five most important events of the economic calendar most likely to affect the markets.
1. Decision on the rate of the Federal Reserve
The UN should not take a decision on interest rates after its two-day political meeting on Wednesday at 14:00 (18:00 GMT), which will keep it in the range of 2.25% to 2, 5%.
The Fed presidency will hold a press conference under surveillance 30 minutes after the release of the Fed statement.
The US central bank will also release new forecasts for economic growth and interest rates, known as "," which will likely indicate that there will be no further rate hikes this year, or at most Furthermore.
The Fed will also announce more details about when it will end its operations to clean up its balance sheet.
2. Survey of the Manufacturing Industry of Philadelphia
US economic data will also remain topical over the coming week, following a series of mediocre reports, the latest being on the agenda.
The report, which will appear Thursday at 8:30 am (Paris time), should show a reading of 6.1 in March. It fell into negative territory for the first time since May 2016 in February, reaching -4.1.
Investors will pay close attention to the data after a similar survey last week showed that manufacturing activity in the New York area had fallen to its lowest level since May 2017 this month, offering further evidence of a marked slowdown in economic growth early in the first quarter.
PMI data released Friday on the manufacturing and services sectors will be important. Existing home sales are also released Thursday.
3. Another vote in Brexit
Over the weekend, the British prime minister warned lawmakers that unless they approve his divorce deal around Brexit, Britain's exit from the Union could face a long delay.
Its agreement, which aimed to maintain close relations with the EU while leaving the formal structures of the bloc, was rejected by 230 votes in parliament on January 15 and by 149 votes on March 12.
But May continues to fight for support for her plan, which is expected to be presented for the third time to lawmakers next week, possibly Tuesday.
To get it through Parliament, the Prime Minister has to convince dozens of rebels supporting Brexit in his own conservative party and the Democratic Unionist Party of Northern Ireland (DUP), which supports his minority government.
After two and a half years of crooked divorce negotiations with the EU, the end result is still uncertain with options including a long delay, an agreement with May, a disorderly exit without agreement or even another referendum.
4. Announcement of the policy of the Bank of England
Governor Mark Carney and his peers responsible for setting interest rates should keep their borrowing costs unchanged at 0.75% when their policy is announced at 8:00 am (ET) (12:00 pm GMT) on Thursday.
Economists are expecting a 9-0 vote from the MPC in favor of maintaining rates.
In addition to Brexit and BoE, market participants will focus on the monthly employment report, as well as the latest inflation and retail sales figures, which provide new insights into the health of the economy. .
The UK economy almost stagnated again in February, in the wake of Brexit nerves and weak global growth.
5. Flash PMI of the euro zone
The IHS Markit Composite Flash (PMI) for the Eurozone is due to be delivered on Friday at 05:00 (09:00 ET), while there is expected a slight rise to 52.0.
The index measures the combined output of the manufacturing and services sectors and is considered a good indicator of overall economic health.
Before the euro area SMIs, France and Germany will release their own PMI reports at 4:15 am ET (08:15 GMT) and at 4:30 am (8:30 am GMT) respectively.
Earlier this month, the European Central Bank pushed back at least until 2020 the timing of its first post-crisis rate hike. He also proposed to banks a new cycle of low-cost loans to revive the economy of the euro area.
– Reuters contributed to this report
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