It looks set to be another busy week for financial markets this week, with a macroeconomic calendar dominated by central bank rate decisions and key US inflation data.
Crucial rate announcements from the Reserve Bank of Australia, the Bank of Canada, the Swiss National Bank, and the European Central Bank are scheduled to take place in the coming days, alongside key CPI and PPI releases from the US, which are expected to confirm the Federal Reserve’s course of action next week. In addition, several important data releases from other jurisdictions are on the horizon, creating the conditions for what could be a very lively trading week.
Here is our usual day-by-day breakdown of the major risk events this week:
The trading week begins quietly from a calendar perspective, with only Chinese CPI and PPI data due to be released during the trading sessions. However, traders anticipate market movement as the implications of Friday’s US employment data update continue to be digested.
Tuesday brings the first key central bank rate decision of the week, with the Reserve Bank of Australia set to announce its latest decision during the Asian session. The remainder of the day’s calendar remains relatively light.
Wednesday starts quietly again, with a sparse calendar for the first two trading sessions. However, the focus will shift sharply early in the New York session with the release of the final CPI update before the Federal Reserve’s meeting next week. Additionally, the Bank of Canada is scheduled to announce its latest rate decision, with a 50-basis point cut anticipated by markets.
Thursday is by far the busiest day in the macroeconomic calendar, featuring a range of tier 1 data and central bank announcements. The Asian session begins with Australia’s key employment data, followed by rate decisions from both the Swiss National Bank and the European Central Bank during the European session. Later, the New York session brings further inflation data in the form of PPI figures, as well as the weekly US unemployment claims numbers.
From feast to famine, traders are expecting a quieter day on Friday after the plethora of updates on Thursday. There is little on the calendar in the Asian session and there will be a strong focus on the UK markets on the European open when the latest US GDP data is released, however most market participants are expecting smoother trading conditions into the weekend with no major updates scheduled in the US session.
