A data-heavy week could lead to more volatility in stock markets, especially with the CPI data release. Pay attention to these events and central bank pronouncements to make informed investment decisions. Investors should be prepared for potential price swings.


Key Events:

  • US CPI Inflation Report (Wednesday): This is the most anticipated event. A higher-than-expected reading could delay Fed rate cuts and hurt stocks.
  • UK Wage Growth Data (Tuesday): Dovish signals from the Bank of England, including a potential shift towards rate cuts, will be in focus.


Other Important Data:

  • Fed Chair Jerome Powell Speech (Tuesday): Powell’s comments on inflation and rate cuts will be closely watched.
  • US Retail Sales (Wednesday): This data point will shed light on consumer spending trends.
  • Australia Employment Data (Thursday): This release will provide insights into the health of the Australian labor market.


Market Volatility Expected:

  • After a quiet previous week, a more active trading week could lead to increased volatility, especially following the release of key data.


Day-by-Day Breakdown:

  • Monday: New Zealand inflation data could impact the Kiwi currency. Speeches from Federal Reserve members Jefferson and Mester, and Swiss National Bank’s Thomas Jordan are also on tap.
  • Tuesday: Key UK jobs data and Japanese producer price data will be released. Later, Fed Chair Powell speaks.
  • Wednesday: Australian wage price data and US producer price data come out. The focus shifts to US CPI data in the afternoon, followed by retail sales and manufacturing data.
  • Thursday: Japanese preliminary GDP and Australian jobs data are in focus. European Central Bank releases its financial stability report. More US data, including unemployment claims and industrial production, is released later.
  • Friday: China’s industrial production and retail sales data could move Asian markets. Speeches from Fed members Waller and Kugler might add volatility towards the weekend.


Focus on Asia and US:

  • The week will start with Asian markets reacting to Friday’s Wall Street performance. Later in the week, Asian markets will also be impacted by the US CPI data and other releases.


Watch Out for Fed Speakers:

  • Speeches by Fed officials throughout the week could provide additional clues about the central bank’s monetary policy stance.
Categories: ARFX News

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