Investing.com - In the week ahead, market players will be turning their full attention to a highly anticipated referendum on whether Britain remains in the European Union on Thursday.
Prior to the referendum, Federal Reserve Chair Janet Yellen’s monetary policy testimony in Congress on Tuesday and Wednesday will attract the markets’ attention.
In terms of U.S. data, existing and new home sales as well as durable goods orders will be in focus as traders attempt to gauge the health of the economy.
Elsewhere, investors will be looking to Thursday’s survey data on euro zone business activity, as well as a pair of reports on German business confidence, for fresh indications on the health of the region’s economy.
Ahead of the coming week, Investing.com has compiled a list of the five biggest events on the economic calendar that are most likely to affect the markets.
1. British EU referendum
The U.K. will vote on a referendum to decide if it continues to be a part of the European Union on Thursday, with polls closing at 21:00GMT. The result will likely be projected early Friday, before the official vote count is announced, based on preliminary vote counts and exit polling.
The June 23 vote could have big implications for the global economy. Analysts say if the vote is to leave, the pound could drop sharply, stocks and commodities would sell off, while safe-havens, like gold and bonds, will see increased demand. A vote to stay may have the opposite effect, causing a snap back in the pound and risk assets and a sell-off in bonds.
Voters in the U.K. appear to be evenly split on whether to support a departure by the U.K. from the European Union. While the "Remain" campaign held as much as a 70-30 lead several months ago, the "Leave," vote has surged ahead in several prominent polls last week.
2. Fed Chair Yellen testifies
Federal Reserve Chair Janet Yellen is set to deliver her semi-annual monetary policy testimony on the economy before Senate and House committees in Washington DC on Tuesday and Wednesday.
Yellen is scheduled to testify on the economy before the Senate Banking Committee at 14:00GMT, or 10:00AM ET, Tuesday. On Wednesday, Yellen will appear in front the House Financial Services Committee also at 14:00GMT, or 10:00AM ET.
Little news is expected from the Fed chair, after the U.S. central bank released updated forecasts on the economy and interest rates following last week’s policy meeting.
3. U.S. housing, durable goods data
The National Association of Realtors is to release data on existing home sales for May at 14:00GMT, or 10:00AM ET, on Wednesday, amid forecasts for a gain of 1.1% to 5.54 million, following an increase of 1.7% a month earlier.
On Wednesday, the Commerce Department is to publish a report on new home sales for May at 10:00AM ET. The data is expected to show a drop of 8.0% to 565,000, following a jump of 16.6% in April.
The U.S. is to close out the week with a report on May durable goods orders at 12:30GMT, or 8:30AM ET, Friday. The data is expected to show that orders for durable goods slumped 0.5% last month, following a gain of 3.4% in April, while core orders are forecast to inch up 0.2% after rising 0.5% a month earlier.
4. Flash euro zone PMIs for June
The euro zone is to publish preliminary data on manufacturing and service sector activity for June at 08:00GMT, or 4:00AM ET, on Thursday, amid expectations for a modest decline.
Ahead of the euro zone PMI's, France and Germany will release their own PMI reports at 07:00GMT and 07:30GMT respectively.
5. German business surveys
A pair of reports on June German business sentiment will also be in focus. The ZEW Institute will publish its German business climate index at 09:00GMT on Tuesday, while the Ifo research institute will release its own report at 08:00GMT on Friday.
Stay up-to-date on all of this week's economic events by visiting: http://www.investing.com/economic-calendar/