Global financial markets enjoyed a more buoyant week last week as investors started to see some more silver lining to trade updates, and data remained relatively strong. Key U.S. employment numbers out at the end of the week came in better than expected, which helped Wall Street to close the week on a high.
The week ahead has a big central bank focus, with both the Federal Reserve and the Bank of England due to update the market on their latest calls, as well as several central bankers scheduled to speak. Once again, trade and tariff updates will not be far from traders’ minds, but we could see smoother conditions if details on negotiations start to hit the media.
Here is our usual day-by-day breakdown of the major risk events this week:
Another holiday-influenced start to the week, with some major centres enjoying long weekends. However, we do have some key data releases as well, with the Swiss CPI numbers due out in the European session and the U.S. ISM Services PMI data scheduled for release early in the New York day.
Tuesday looks set to be a quiet day in calendar terms, with very little in the way of Tier 1 data to move the dial across all three trading sessions. We do hear from Swiss National Bank Chairman Martin Schlegel during the London day, and the Ivey PMI numbers are due out in Canada, but overall expect sentiment to dominate flows.
It’s a busier day on Wednesday, with the calendar kicking off early in the Asian session with New Zealand employment data due out soon after the open. We also hear from RBNZ Governor Christian Hawkesby later in the day. UK Construction PMI data is out early in the London session, but then it is a long wait for what will probably be the major event of the week, when the Federal Reserve Bank updates the market on its latest rate decision.
It is another quiet calendar day in the Asian session, with little on the cards in the first trading session. However, the focus will be fully on UK markets at the European open, with the Bank of England expected to deliver another interest rate cut. The New York open sees the usual U.S. Weekly Unemployment Claims numbers released, but that is all for the session.
The Asian session once again has little of importance on the schedule, but we hear from a plethora of central bank speakers as the day progresses. The main focus for the London session will be when we hear from Bank of England Governor Andrew Bailey, but then later in the day, once New York opens, we are set to hear from a raft of Fed speakers, including Kugler, Goolsbee, Waller, Williams, Cook, Hammack, and Musalem. However, the initial focus for that session will be north of the border when Canadian employment numbers are released shortly after the open.
