It was an interesting week that financial markets battled through last week, with a plethora of fresh updates from central banks, central bankers, and data. Volatility remained relatively high with stock markets and gold drifting lower from all-time record levels and currencies breaking into new weekly ranges.
It looks like being another busy week ahead for traders with a strong focus on US markets again, that will culminate on the key US jobs numbers on Friday afternoon. The Reserve Bank of Australia will make its latest rate call and there are some key inflation data numbers out of Europe, but most market participants are looking at the US updates for any fresh direction.
Here is our usual day-by-day breakdown of the major risk events this week:
It is relatively quiet on the data front on Monday; however, the central bank speakers circuit is in full force again with members of the Buba, the MPC, and the Fed all scheduled to speak throughout the day. The London session sees the release of key Spanish Flash CPI numbers and we also have Pending Home Sales data out of the US, but traders are expecting relatively smooth trading conditions.
The calendar kicks into action on Tuesday with risk events scheduled across all three sessions. The initial focus in the Asian session will be on Chinese markets with key PMI numbers due early in the day; however, it will swiftly move further south to the antipodes with the Reserve Bank of Australia due to make its latest interest rate decision. The European session sees the release of the German CPI data and ECB President Christine Lagarde is due to speak. The New York day has the first US jobs number of the week out when the JOLTS Job Openings data drops at the same time as the CB Consumer Confidence number.
The Asian session has little of note on the cards on Wednesday; however, we have more inflation data out in Europe, this time with the EU CPI numbers released. There is more US data due soon after the New York open with the ADP Non-Farms number followed by the ISM Manufacturing PMI data as well as the Weekly US Crude Oil Inventory update.
Chinese markets are on holiday on Thursday which may affect liquidity in the Asian session. There will be a strong focus on Swiss markets at the London open with key CPI numbers due out, with traders expecting moves in the franc especially after last week’s hold from the SNB. The US session has just the Weekly Unemployment Claims data scheduled.
It is non-farms day on Friday with traders expecting the US data to be the major focus for the day. However, Bank of Japan Governor Kazuo Ueda is scheduled to speak in the Asian session, and this could see moves in the yen, with his comments coming just ahead of the weekend’s Japan Prime Minister election. German markets are on holiday on Friday, and we do hear from the ECB’s Christine Lagarde during the day; however, the US Non-Farm Payrolls, Average Hourly Earnings, and Unemployment Rate updates are expected to dominate sentiment.
