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Top Economic Events For 2022

top economic events 2022

With 2021 now behind us, it’s time to turn our attention to the coming year. Are you ready for 2022? If not, don’t worry. This article will prepare you for the next 12 months in the financial markets.

Major Financial Events Of 2022

Public health, monetary policy, energy, and politics are the featured market underpinnings on tap for the coming year. Read on to learn more about the timing and potential impact of each market driver on the world of finance.

COVID-19

If we’ve learned anything from the past two years, the COVID-19 pandemic can profoundly impact the markets. From the initial onslaught during March 2020 to the emergence of Omicron in November 2021, COVID-19 can quickly derail any analyst’s economic outlook.

In late November 2021, the Omicron variant brought angst to the markets. Upon the variant being reported in the United States, the US30 posted a 1,000 point Black Friday loss.

Omicron Black Friday panic

The reach of COVID-19 is extensive. The events below can impact any business strategy and quickly bring volatility to all markets:

  1. New variants
  2. Travel restrictions
  3. Quarantines
  4. Supply chain disruptions

COVID-19 will continue to play a role in the markets throughout 2022. As we saw with the Black Friday Omicron panic, corrections can be severe and develop swiftly.

Monetary Policy

2022 is slated to be an active year for central banks. Industry analysts expect interest rates to rise as policies turn from “accommodative” to “restrictive.” The main reason for this pivot is to manage inflation and promote pricing stability for consumers.

The tightening narrative stems from 2021’s robust inflation figures, specifically consumer price index (CPI) readings. In the U.S., CPI reached 40-year highs; the U.K. saw inflation hit levels not seen in 10 years. To combat global inflation, the European Central Bank (ECB), Bank of England (BoE), and U.S. Federal Reserve Bank may look to raise interest rates, reduce debt purchases, and incentivize savers.

One thing is certain, Jerome Powel is about to face a very challenging year.

Jerome Powell, economic news

A recent example of central bank-induced volatility came in February 2022 with a 0.25% BoE rate hike. The GBP/USD chart below gives us a good look at how policy changes can impact a major currency pair.

GBPUSD interest rate hike

If you’re going to trade in 2022, be sure that you know when central banks make their policy announcements to the public. Central bank releases can significantly impact economic growth, market volatility, and the global economy. In the event that the U.S. Federal Reserve Bank, BoE, or European Central Bank adjust their policy stance, forex volatility is assured.

European Central Bank (ECB) Schedule

  • ECB monetary policy meetings for 2022 are scheduled as follows: 11 March, 22 April, 10 June, 22 July, 9 September, 28 October, 16 December.

U.S. Federal Reserve Bank (Fed) Schedule

  • Meetings for 2022 are scheduled as follows: March 15-16, May 3-4, June 14-15, July 26-27, September 20-21, November 1-2, December 13-14.
  • The official U.S. Federal Open Market Committee (FOMC) meeting minutes are released three weeks after each Fed meeting.

Bank Of England (BoE) Schedule

  • Monetary Policy Committee (MPC) announcements for 2022 are as follows: 17 March, 5 May, 16 June, 4 August, 15 September, 3 November, 15 December.

OPEC+ Policy

As the adage goes, “oil is the lifeblood of the industry.” For 2022, oil will be a significant economic and GDP growth driver. West Texas Intermediate (WTI) and North Sea Brent (Brent) crude oil eclipsed the $93.00 mark in early February, setting the stage for a 2022 test of $100 per barrel.

Given oil’s lofty valuations, its supply will be a primary focus for energy traders and investors. And, one of the vital supply-side energy market drivers is the policies of OPEC+. In an early-February meeting, the members of OPEC voted to stick to a planned springtime 400,000 barrel increase in output. As you can see in the USOIL market data below, traders took the decision as a sign of limited supply.

crude oil futures chart

OPEC+ meetings and decisions may prove to be significant market movers in 2022. Typically, an OPEC press conference or policy vote is announced in advance; be sure to regularly monitor OPEC scheduling as special events may be held in excess of the planned docket.

If you’re trading energies in 2022, a great way to stay on top of OPEC news is to study the group’s Monthly Oil Market Report.

U.S. Mid-Term Elections

In November of this year, the U.S. Congressional Midterm elections will be held. Up for grabs is control of the House of Representatives and Senate. The key hot-button political issues will be COVID-19 response, infrastructure spending, labor market strength, and immigration policy.

As the 8 November Election day approaches, politics is likely to become a vital financial market driver. At stake are trillions of dollars in proposed government spending and a potential transition of power from the Democratic to the Republican party.

Will Election 2022 derail the 2020/2021 Dow Jones Industrial Average (DJIA) bull market? Given the current political and economic landscape, anything is possible.

dow jones industrial average index chart

The outcome of this year’s midterms remains uncertain. And, markets aren’t fond of uncertainty. If historical data is correct, the sitting US president’s party loses congressional seats in midterm elections. Should history repeat itself, control of the Senate and House of Representatives would reside with the Republicans.

Given a Republican congressional majority, the Biden administration’s proposed $5 trillion in infrastructure spending and proposed environmental policies would likely be off the table. The forex impact could be substantial, as traders and investors price in the new balance of power in Washington D.C.

Bottom Line

2022 is filled with events that may roil markets, impact consumer spending, and directly influence economic growth. Each is likely to encourage participation from traders and investors, which may enhance pricing volatility. 

If you’re going to be active in the markets during 2022, be sure to reference an economic calendar and live news feed. By staying abreast of key events, you can navigate market turbulence and profit from the action.

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