The important role of economic data and Powell's testimony

Yellen's first testimony

Powell and Yellen testify before the House Financial Services Committee on Tuesday and the Senate Banking Committee on Wednesday. Since just last week we had the FOMC meeting, no surprise is expecting from there.

Purchasing manager index

PMI data from Eurozone, UK, and United States will be one of the most important data pieces of the week. Service PMI expects to experience the gain, especially in the UK and the US, as they had better vaccination progress. In Eurozone, it will not be surprised if we see a slight decline after three positive continuous reports.

Housing and Other US data

Monday and Tuesday, US New and existing home sales will be published, which will probably show weakness due to the impact of severe winter storms on economic activity in February. This weakness for the same reason is expected to be observed in personal income and spending figures. Tuesday and Wednesday also will be the API and EIA data to see the US crude oil inventories, while final numbers of US GDP for Q4 2020 will be out on Thursday. The latest update was a 4.1% growth after shaking a gain of 33.4%

Doubt in Eurozone and hopes in the UK

In the Eurozone, PMI data for March will show how they are performing on the vaccination progress, And the UK is to release a mass of data, starting with the latest jobs data on Tuesday, PMI and Inflation numbers on Wednesday, and retail sales figures out on Friday. Data is expected to show the dominant services sector rebounding on optimism about the reopening. And generally, all the reports taken together could indicate that the UK economy is emerging from the worst of the pandemic crisis.

Banking stocks on fire and tech sector suffering

Market participants are likely to remain focused on the rise in bond yields. Optimism about economic reopenings and faster recovery, shifting the interests on financial stocks, powering the S&P 500 and the Dow to record levels, while Nasdaq must be under pressure as technology and high-growth stocks have lost favor in recent months.

BIS summit and CBDC

Four-day conference organized by the Bank for International Settlements on innovation in the digital age, will be held this week. The main focus of the summit will be on Central banks Digital currencies. Mr. Powel on Monday will speak at the start of the summit. During these four days, we are waiting to see more speeches from Mr. Makclom, Mrs. Lagard, and Andrew Billy, Bank of England's governor. Crypto traders and investors must watch this summit closely.