It was a lively week last week, with geopolitical updates dominating market sentiment. However, some data prints also saw some significant moves in the market.
It looks like it could be a very busy week ahead for traders, with geopolitics likely to dominate sentiment again. However, there are some strong fundamental updates due as well which could move markets, including the Fed rate update and some key data releases.
Traders in Asia are expecting to see some moves on the Monday open again, with the Yen particularly in focus after a sharp move on Friday and more intervention chat over the weekend.
Here is our usual day-by-day breakdown of the major risk events this week:
Australian markets are on holiday on Monday, which could lead to some lower liquidity during the opening session, especially near the open where traders are expecting to see some moves. There is little on the calendar in the Asian session. We do have the German IFO Business Climate data out in the London session and the US Durable Goods numbers released in the New York session. However, most market participants are expecting geopolitical updates to dominate through the day.
It’s quiet on the calendar again for the first two sessions of the day. However, the US session will again probably prove to be lively, with a scheduled speech from President Trump due during the day and Consumer Confidence data scheduled alongside the Richmond Manufacturing Index numbers.
The standout day of the week from a markets calendar perspective. The Asian session will see a strong focus on Australian markets, with the key CPI data due out, whilst the New York session is bookended by key interest rate updates from the Bank of Canada and the Federal Reserve Bank. Earnings reports from Facebook, Microsoft and Tesla should also keep stock markets lively after the bell.
It is a much quieter day on Thursday, with very little on the calendar in the Asian and London sessions. The New York session does see the release of the usual Weekly US Employment Claims data, and Apple earnings numbers are scheduled. However, we should see smoother trading conditions for most of the day.
The Asian session will see an initial focus on Japanese markets, with key Tokyo CPI data due out early in the day. The London session will have a focus on Germany, with both CPI and GDP numbers due out, which could see some moves in the Euro. However, again the US session looks the most likely for volatility. US PPI and Canadian GDP numbers are due out early in the session, which could see some moves in the respective markets. However, traders will again be keeping a close eye on newswires after the last couple of Friday final sessions have proved to be volatile on geopolitical updates.
