Market Caution Despite Quiet Close: Financial markets ended the week on a subdued note, but traders anticipate increased volatility ahead. Key inflation data releases and central bank pronouncements are likely to stir things up.

Yen Nears Critical Level:

US PCE Data Takes Center Stage:

• Monday:
  • A relatively quiet day with no major events in Asia.
  • The German Ifo business climate index and a speech by Federal Open Market Committee (FOMC) member Christopher Waller are highlights in the European session.
  • Later, Bank of Canada Governor Tiff Macklem’s speech might impact the Canadian dollar (Loonie).
• Tuesday:
  • The first half is light on market-moving events.
  • However, the release of Canadian Consumer Price Index (CPI) data in the New York session could trigger volatility.
  • The US Consumer Confidence and Richmond Fed Manufacturing Index reports also land on Tuesday.
• Wednesday:
  • Australian markets will be in focus with the release of their key CPI figures.
  • The European session lacks significant events, but the US unveils New Home Sales and Crude Oil Inventory data later.
• Thursday:
  • The Asian session is quiet, but European traders will be attentive as Bank of England Governor Andrew Bailey speaks about the Financial Stability Report.
  • The US session is packed with data releases, including Quarterly GDP, Durable Goods Orders, Final GDP, and Pending Home Sales figures.
• Friday:
  • The initial focus in Asia shifts to Japan’s Tokyo CPI data.
  • Spanish Flash CPI might cause euro fluctuations in the European session, but the main event occurs in New York with the release of the Core PCE Price Index.
  • Other data points for traders to consider before the weekend include Canadian GDP figures and revised University of Michigan data.