It looks like it could be a very busy week ahead for traders, with plenty of geopolitical updates likely, as well as key data releases, central bank updates, and earnings reports.
Traders are expecting to see some moves on the Monday open after President Trump threatened several countries, including France, the UK, and Sweden, with tariffs of up to 25% if they go ahead with military exercises in Greenland.
Here is our usual day-by-day breakdown of the major risk events this week:
It is a quiet calendar start to the week on Monday, with little on the schedule for the first two sessions of the day. US markets are closed for Martin Luther King Jr Day; however, there will be a focus on Canadian markets on the North American open when key CPI data is released, as well as the Bank of Canada Business Outlook Survey.
It is a slightly busier day on Tuesday. The initial focus in the Asian session will be on Chinese markets, with key Loan Prime Rate updates due midway through the session. UK markets will feature early in the European session, with employment data due out before Bank of England Governor Andrew Bailey testifies before the Treasury Select Committee. We also hear from SNB Chairman Martin Schlegel and Buba President Joachim Nagel when they speak from the World Economic Forum in Davos.
It is a quiet start again to the day in Asia; however, UK markets again feature in the European session, with CPI data due out. The focus swings to Davos again, where we are scheduled to hear from ECB President Christine Lagarde and US President Donald Trump.
Australian markets will be the early focus for Asia-based traders on Thursday, with employment data due out during the Sydney morning. There is little on the agenda in the London session; however, the New York day will see two key US data updates, with the Core PCE Price Index data due out alongside the latest GDP update.
The Asian session should prove to be busy on Friday, with New Zealand CPI data due out early in the day before focus moves north to Japan for the latest rate decision from the Bank of Japan. There is a raft of flash Manufacturing and Services PMI data due out in the London session, while the New York day sees Canadian retail sales numbers, the US PMI data, and the revised University of Michigan Consumer Sentiment update.
