It was a big week for financial markets last week, with data and central bank updates coming thick and fast. US data was mixed throughout the week but culminated in stronger-than-expected employment data drop on Friday, and we got the expected rate cut from the European Central Bank and a hold from the Bank of Canada.
The week ahead is less hectic from a macroeconomic calendar perspective but still has some key data due out of the US and other jurisdictions.
Here is our usual day-by-day breakdown of the major risk events this week:
There are a plethora of bank holidays on Monday to kick off the week, which could hit liquidity and investor enthusiasm. The main event of the day comes early in the piece in the Asian session, when we have the Chinese CPI and PPI updates. There is little of note in the following two sessions of the day, and traders are expecting relatively quiet conditions unless we have anything fresh hitting the newswires.
It is another quiet calendar day on Tuesday with more rangebound conditions expected; however, midway through the day in the European session, we do have key UK employment data due out, which should see some moves in sterling markets.
The first two trading sessions of Wednesday are once again lacking in any Tier 1 data releases; however, the highlight event of the week is due shortly after the New York open. The US CPI data is due out early in the session, and traders are expecting plenty of volatility around the event as we get the latest US inflation update. US Crude Oil inventory numbers are also due out later in the afternoon session.
Thursday is a little busier on the calendar, although the Asian session is again scheduled to be relatively quiet. The focus for the European day will be on UK markets again, with the crucial GDP data due for release. The US session sees the second key inflation number due out of the States — this time, PPI data is set to come out early in the day alongside the usual Weekly Unemployment Claims numbers.
The Asian session is again lacking any serious data updates on Friday, and it is a similar situation in Europe, although the Final CPI numbers in France and Germany will grab some analysts’ attention. The main propensity for volatility again comes in the New York session, with the University of Michigan Consumer Sentiment and Inflation Expectations data due out midway through the day.
