A quiet start to the week picks up steam on Wednesday with central bank decisions and US inflation data. The ECB meeting and US CPI report are the key events to watch for potential market swings.

Central Bank Decisions:

• Reserve Bank of New Zealand (RBNZ): Interest rate announcement on Wednesday (Asia open).
• Bank of Canada (BoC): Interest rate announcement on Wednesday (New York open).
• European Central Bank (ECB): Interest rate announcement and policy update on Thursday.

Key Data Releases:

• Australian consumer confidence: (Tuesday, Asian session)
• US CPI Inflation: Released Wednesday (New York open). This is a crucial report to gauge inflationary pressures in the US economy.
• FOMC Meeting Minutes: Released Wednesday (after New York close). These minutes will reveal the discussions and thought processes of Fed policymakers at their last meeting.
• China CPI and PPI: Released Thursday (Asia open). Inflation data from China, the world’s second-largest economy.
• US PPI Inflation: Released Thursday (US open). This report measures inflation at the wholesale level in the US.
• UK GDP data: (Friday, European session)
• University of Michigan Consumer Sentiment: Released Friday (US open). This survey measures consumer confidence and inflation expectations in the US.

Market Impact:

• The ECB meeting could cause volatility in the euro, especially if they maintain their dovish tone.
• A strong US CPI report might lead to a rally in the US dollar, but intervention from the Bank of Japan is a possibility. A strong inflation number could lead to fewer Fed rate cuts this year.
• The BoC’s decision is less certain, but a rate hike is a possibility.
• The FOMC minutes might offer some insight into the Fed’s future rate cut plans.
• Overall, this week’s events could significantly impact global markets and currencies.