Last week finished with a lively session as US employment data came out lower than expected, with the market now looking for more rate cuts from the Fed before the end of the year.
The week ahead is less busy on the calendar front; however, the data releases and central bank updates that are scheduled are significant market events. US inflation numbers lead the way on the data front, while the ECB will gather plenty of attention on Thursday when it makes its latest rate call.
Geopolitics will also likely play a part in market moves, so traders are again expecting to see plenty of action in the days ahead.
Here is our usual day-by-day breakdown of the major risk events this week:
There is very little on the calendar on Monday to move the dial; however, we are expecting to see more moves on the back of Friday’s key US employment update.
Tuesday is also relatively quiet on the data front, although Chinese New Loans numbers in the Asian session will see some reaction in the markets. The European session sees updates from the Buba’s Joachim Nagel and the Swiss National Bank’s Martin Schlegel, which could move the Euro and Franc, but there is little else scheduled across the day.
The calendar does kick into action on Wednesday, though. The initial focus in Asia will be on Chinese markets again, with key CPI and PPI numbers due out early in the session. The Swiss National Bank’s Schlegel is speaking again in the London session; however, the main focus of the day will come after the New York open, with the latest US PPI numbers due out. The weekly US Crude Oil Inventory data is also scheduled in the afternoon.
Thursday is set to be the busiest day of the week for traders, with key updates due across all sessions. The early focus in Asia will be on New Zealand markets, with RBNZ Governor Christian Hawkesby due to speak. The main events of the day come later, with the ECB delivering its latest interest rate update just 15 minutes before the latest US CPI numbers are released. The US Weekly Unemployment Claims numbers are due out at the same time, before focus sweeps back to Europe for the ECB press conference.
It is a quieter day on Friday, with nothing of note on the calendar in the Asian session. UK markets will be in focus early in the London session with a big data drop scheduled, the GDP update being the highlight. The US session sees the Preliminary University of Michigan Consumer Sentiment and Inflation Expectations data released early in the day, but traders are expecting a quieter end to this week than the previous one.
