Following an eventful week dominated by central bank decisions, key U.S. data releases, and global trade developments, financial markets experienced significant shifts across major assets. While the upcoming week may appear lighter in terms of scheduled economic releases, several high-impact events are still expected to shape sentiment and drive volatility. The Bank of England is set to announce a crucial interest rate decision, while geopolitical developments, corporate earnings, and economic indicators from key economies will keep traders alert. Despite a quieter calendar overall, expectations for elevated market swings remain, particularly given the underlying uncertainty across global economies. Here’s a detailed day-by-day breakdown of key macroeconomic events and risk drivers in the week ahead:
📅 Monday, 4 August 2025
- Public Holidays:
- Markets in Australia and Canada are closed for national holidays, which could result in thinner liquidity and muted trading activity during the early part of the week.
- European Session:
- Switzerland: Release of Consumer Price Index (CPI) data during the London morning session will be closely monitored for clues about inflation trends in the Swiss economy and potential implications for future monetary policy.
- No major data scheduled for the U.S. or Asian trading hours, setting the stage for a quiet global session barring any unscheduled headlines.
📅 Tuesday, 5 August 2025
- Asian Session:
- Japan: Publication of the Bank of Japan’s Monetary Policy Meeting Minutes, providing insight into the central bank’s latest internal discussions and forward policy considerations. Traders will be looking for any commentary on inflation management and yield control adjustments.
- U.S. Session:
- United States: Release of the ISM Services PMI, a key measure of service sector activity and economic momentum. Market participants will assess the data for signs of resilience or softening in consumer-facing sectors.
- Overall, a relatively quiet day is expected across global markets, with limited scheduled releases and no major surprises anticipated from leading central banks.
📅 Wednesday, 6 August 2025
Asian Session:
- New Zealand: Early release of employment figures, including the unemployment rate and participation levels. The labor market update is a vital indicator for assessing domestic economic strength and could influence expectations for future Reserve Bank policy actions.
European Session:
- Light calendar, with no major releases from the euro area or UK expected during the London trading hours. Traders may keep an eye on headlines related to global trade or central bank commentary.
U.S. Session:
- Federal Reserve Speakers:
- Remarks are scheduled from Daly, Collins, and Cook, all members of the Federal Reserve. Given the evolving narrative around inflation and rate trajectory, any comments hinting at policy shifts or economic risks could trigger movement in dollar pairs and equity indices.
- U.S. Crude Oil Inventories:
- The weekly energy report will offer insights into supply-demand balances and inventory trends, which could impact oil prices and energy sector sentiment.
📅 Thursday, 7 August 2025
Asian Session:
- New Zealand: The focus remains on Kiwi markets with the publication of quarterly Inflation Expectations. Markets will evaluate whether inflation expectations are cooling or becoming more entrenched, which may influence rate guidance.
European Session:
- United Kingdom:
- Bank of England Policy Decision – The headline event of the week. Expectations are firmly in place for a possible rate cut, as policymakers respond to softer economic indicators and a cooling inflation profile.
- Traders will scrutinize the accompanying statement and any economic forecasts for clues about the central bank’s policy path through the rest of the year.
U.S. Session:
- United States:
- Weekly Unemployment Claims data will be assessed for labor market trends and potential early signs of a slowdown in hiring.
- Canada:
- Release of Ivey PMI, which offers a broad measure of Canadian business conditions across industries. Results may help gauge short-term growth outlook and contribute to Bank of Canada rate expectations.
📅Friday, 8 August 2025
Asian & European Sessions:
- No high-impact economic data scheduled for release during the early part of the trading day. Market movements may instead be driven by week-end positioning and spillovers from Thursday’s major events.
U.S. Session:
- Canada:
- Employment Data – A key labor market update that could heavily influence Canadian dollar performance and monetary policy expectations. This includes changes in job creation, unemployment rate, and wage growth.
Weekend (Saturday – 9th August 2025):
- China:
- Scheduled release of Consumer Price Index (CPI) and Producer Price Index (PPI). Though outside the standard trading week, these figures could shape market sentiment ahead of Monday’s open, especially if results significantly diverge from forecasts.
- Any large surprises may lead to weekend headlines and potential price gaps when markets reopen.
Key Central Bank Expectations and Macro Themes
| Date | Region | Event |
|---|---|---|
| Mon, Aug 4 | Australia, Canada | Bank holidays (low liquidity risk) |
| Mon, Aug 4 | Switzerland | Consumer Price Index (CPI) |
| Tue, Aug 5 | Japan | BoJ Monetary Policy Meeting Minutes |
| Tue, Aug 5 | U.S. | ISM Services PMI |
| Wed, Aug 6 | New Zealand | Employment Data |
| Wed, Aug 6 | U.S. | Fed speakers (Daly, Collins, Cook) |
| Wed, Aug 6 | U.S. | Crude Oil Inventories |
| Thu, Aug 7 | New Zealand | Inflation Expectations |
| Thu, Aug 7 | UK | Bank of England Interest Rate Decision |
| Thu, Aug 7 | U.S. | Weekly Jobless Claims |
| Thu, Aug 7 | Canada | Ivey PMI |
| Fri, Aug 8 | Canada | Employment Data |
| Sat, Aug 9 | China | CPI and PPI |
Categories: Market News
