It is a huge week ahead for financial markets this week, with a packed macroeconomic calendar lined up for traders. Last week saw a strong return of US data after the lengthy government shutdown, and updates have kept expectations high for a Federal Reserve rate cut this week, with investor sentiment remaining positive.
It will not be all about the Fed, however, with several other major central banks due to update the market on interest rates, and some key data releases also out over the coming sessions. US data continues to play catch-up, and we also hear from a plethora of central bankers, so traders are expecting another lively week ahead.
Here is our usual day-by-day breakdown of the major risk events this week:
It’s a quiet start to the calendar week on Monday, with little on the cards to move markets across all three of the trading sessions and little on the geopolitical front over the weekend to spark moves on the Monday open.
Things heat up quickly on Tuesday, with central banks and data coming thick and fast. The focus in the Asian session will be on Australian markets for the latest rate call from the RBA. Later in the day, traders are expecting moves in the Yen when Bank of Japan Governor Kazuo Ueda speaks in London. UK markets will tune in for the BOE’s Monetary Policy Report Hearings before New York opens, and focus turns again to the US job market, with JOLTS Job Openings data due out for both September and October.
It is a huge day for financial markets on Wednesday, with central banks heavily in focus. We hear from new RBNZ Governor Anna Breman early in the Asian session before attention moves north for Chinese PPI and CPI data. The London session sees an update from ECB President Christine Lagarde, but the real action looks set to come after New York opens. The initial focus is north of the border for the Bank of Canada’s rate call, before attention moves swiftly to Washington for the much-anticipated rate decision and update from the Federal Reserve Bank.
Things do not let up on Thursday, with another full calendar day scheduled. Australian markets will be in early focus in the Asian session, with employment data due out midway through the day, before European markets open and we hear the latest rate call from the Swiss National Bank, before focus jumps across the Channel for an update from Bank of England Governor Andrew Bailey. It is a quieter day in the New York session, with just the Weekly Unemployment Claims data due out.
Friday is a much quieter day across all sessions, with the only tier 1 data being the UK GDP numbers early in the European session. However, traders are expecting volatility to remain high given all the updates earlier in the week.
