Get ready for a packed week in the financial markets! This week brings a mix of central bank updates and crucial data releases that could impact asset prices. Here’s a breakdown of what to expect:
Key Themes:
- Busy week with central bank speakers & key data releases
- US CPI inflation on Tuesday is the main event
- UK data in focus with earnings, jobs, inflation & GDP reports
- Hawkish repricing possible if inflation surprises higher
Monday:
- Quiet start in Asian markets, key central bankers speak later.
Tuesday:
- US CPI inflation: Expected to slow to 2.9%, but a significant deviation could move markets.
- UK employment and wages: Forecasts point to cooling growth.
Wednesday:
- UK CPI inflation: Expected slight uptick to 4.1%.
- ECB President speaks: Could influence eurozone sentiment.
Thursday:
- US retail sales: Expected small rise.
- UK preliminary GDP: Flat growth expected, recession risk looms.
Friday:
- US consumer sentiment: Projected increase.
Analysis:
- US CPI inflation will drive market sentiment this week. Higher-than-expected inflation could push for higher interest rates and impact stocks/bonds.
- UK data also important, with potential technical recession if GDP comes in negative.
- Dovish rate cut expectations have faded, replaced by more hawkish outlook due to strong economic data.
Additional Notes:
- New Zealand: RBNZ Governor speaks, Inflation Expectations data released.
- Switzerland: CPI numbers released.
- Australia: Employment data released.
This week could be volatile, with economic data and central bank commentary potentially driving price movements. Keep an eye on the US CPI inflation and UK data, as they could have a significant impact on markets.
Categories: Market News
