It looks set to be another lively trading week ahead for investors, with the emphasis shifting away from the United States—as much as that is possible. Of course, traders will continue to monitor newswires closely for any geopolitical updates, as always.
There is little economic data scheduled from the world’s largest economy, and aside from the Federal Reserve Meeting Minutes, not much is planned from the central bank. As a result, traders will focus on other jurisdictions, with FX players seeking opportunities beyond the US dollar as the week progresses.
Commodity currencies could experience significant movements, with interest rate updates due from both Antipodean central banks and key data releases from Canada.
Here is our usual day-by-day breakdown of the major risk events this week:
It should be a relatively quiet start to the trading week, with little of note on the calendar and key market holidays in both the US and Canada during the final session of the day.
The event calendar picks up significantly from Tuesday, with key events scheduled across all sessions. In the Asian session, the focus will be firmly on Australian markets, with the Reserve Bank of Australia’s interest rate decision due. The London session will see the release of the UK’s key employment data, alongside a speech from the Bank of England’s Andrew Bailey. In North America, Canadian CPI numbers will be released in the first active session of the week.
The Antipodean region remains in focus on Wednesday, with Australian wage price data due shortly before the Reserve Bank of New Zealand announces its latest rate decision. The UK will again be in the spotlight during the European session, with CPI and PPI data set for release. In the US, the economic calendar remains light until the Federal Reserve’s Meeting Minutes are published close to the final bell.
Australian markets take centre stage once again, with employment data released early in the Asian session. However, attention will soon shift north for China’s Loan Prime Rate updates. The European session is relatively quiet, but key US data is scheduled once New York opens, including the usual weekly unemployment claims, the Philly Fed Manufacturing Index, and the weekly crude oil inventory report.
The week concludes with a full calendar on Friday. The Asian session includes yet another update for Australian markets, with a speech from RBA Governor Michele Bullock. Flash Manufacturing and Services PMI numbers will be released across several key markets, including the UK, the EU, Germany, France, and the US. In the final session of the day, Canadian retail sales figures will be published, alongside US existing home sales data and the revised University of Michigan Consumer Sentiment and Inflation Expectations report.
