It was a hectic trading week in financial markets last week, and traders expect volatility to remain high in the week ahead, despite a lighter macroeconomic event calendar. Key US inflation data, due out in the middle of the week, will be a major focus for investors, as will the Bank of Canada’s latest rate decision. There is a smattering of other data due throughout the week, but most market participants expect geopolitical factors to dominate market movements.
Here is our usual day-by-day breakdown of the major risk events this week:
It is set to be a quiet start to the week, with little on the calendar across all three trading sessions. There is some concern about gapping on the Monday open in Asia after Chinese CPI and PPI data over the weekend came in lower than expected.
Another relatively quiet day, with nothing of note due in the first two trading sessions. However, key US jobs data is scheduled once New York opens, with the JOLTS Job Openings report due for release. This data is typically published in the first week of the month but has been moved this time, so the market impact may be slightly increased.
Wednesday is likely to be the busiest day of the week for markets, with the US session hosting two of the major events. There is nothing of note due in the Asian session, and ECB President Christine Lagarde is scheduled to speak during the European session. However, focus will sharpen once New York opens. First, the key US CPI data is due, which could trigger substantial market moves. This will be swiftly followed by the Bank of Canada’s latest rate decision, rate statement, and subsequent press conference.
The first two sessions on Thursday are expected to be relatively quiet, but the second round of US inflation data is due once New York opens. This time, PPI data will be released alongside the usual weekly Unemployment Claims report. PPI numbers traditionally have a slightly lower impact than the previous day’s CPI data.
The Asian session rounds out a week with little to offer from a calendar perspective. However, UK markets will come into focus at the London open, with key GDP data scheduled for release early in the session. The US session should be quieter heading into the weekend, though the Preliminary University of Michigan Consumer Sentiment and Inflation Expectations figures are due shortly after the open.
