It is a case of ‘from famine to feast’ this week in terms of macroeconomic updates, with key data releases from various jurisdictions and several central bank rate decisions on the calendar.
The Federal Reserve, Bank of England, Bank of Japan, and Swiss National Bank are all set to announce their rate decisions this week. Given the volatility seen in recent weeks, traders anticipate significant market movements around these events. Investors also expect geopolitical developments to continue exerting a strong influence on markets, leading many to predict that the recent rollercoaster conditions will persist in the coming days.
Here is our usual day-by-day breakdown of the major risk events this week:
A relatively quiet start to the week, although some key data releases are scheduled. The focus will be on Chinese markets during the Asian session, with Industrial Production and Retail Sales figures due. There is little of note during the European session, but the first key US data releases of the week—Retail Sales and the Empire State Manufacturing Index—are expected shortly after the New York open.
Another relatively subdued day, with no major releases scheduled during the Asian session. The London session will see the latest German ZEW Economic Sentiment data, while attention in the US will shift north of the border for Canada’s CPI figures.
Central banks take centre stage on Wednesday, with the Bank of Japan and the Federal Reserve bookending the day with their latest rate decisions. As always, the Bank of Japan does not have a fixed announcement time, though its decision is usually released around Tokyo lunchtime. Meanwhile, the Federal Reserve keeps markets waiting until close to the end of the day for its announcement.
A busy day across all sessions, with key updates throughout. The Asian session starts with New Zealand’s latest GDP figures, followed by Australian employment data. Later, Chinese Loan Prime Rate updates are also due. The European session will be eventful, beginning with UK employment data, followed by the Bank of England’s rate decision. The Swiss National Bank is also expected to announce its decision in the morning. In the US session, the usual weekly unemployment claims data will be released alongside the Philly Fed Manufacturing Index. Later in the day, Bank of Canada Governor Tiff Macklem is scheduled to speak.
A quieter end to the week from a calendar perspective, with little of note scheduled in the first two sessions. However, Canada will be in focus again at the New York open with the release of Retail Sales data. Later in the day, markets will hear from FOMC member John Williams.
