This week, Central banks take center stage, with several critical announcements expected to influence sentiment. Additionally, data releases from the US, Europe, and Asia will offer insights into global economic trends, while Lunar New Year holidays could impact market liquidity, particularly during the Asian trading sessions.
Below is a detailed day-by-day breakdown of anticipated events for the week commencing January 20, 2025.
Monday, 27 January 2025
- Liquidity Concerns:
- Asian session liquidity is expected to thin as Lunar New Year celebrations begin across the region.
- Australian markets will remain closed for a holiday.
- Key Data Releases:
- China’s PMI data is scheduled for release, a critical indicator of the country’s economic health before its markets close for the week.
- In Europe:
- European Central Bank (ECB) President Christine Lagarde will deliver a speech, likely setting the tone for European market sentiment.
- Release of German IFO Business Climate Index, a key gauge of economic conditions in Europe’s largest economy.
- In the US:
- Publication of New Home Sales data, offering insights into the health of the housing market.
Tuesday, 28 January 2025
- Quiet Start:
- Minimal activity expected in the Asian and European sessions with no major data releases scheduled.
- US Session Focus:
- Release of Durable Goods Orders, a key measure of business investment.
- Publication of the CB Consumer Confidence Index, providing a snapshot of consumer sentiment in the world’s largest economy.
Wednesday, 29 January 2025
- Active Asian Session:
- Bank of Japan’s Monetary Policy Meeting Minutes will be released, offering insights into the central bank’s recent deliberations.
- Australia will release its Consumer Price Index (CPI) data, a crucial indicator of inflationary trends.
- Central Banks in Focus:
- European session:
- UK markets will pay attention as Bank of England (BOE) Governor Andrew Bailey testifies before the Treasury Select Committee on the Financial Stability Report.
- North American session:
- Bank of Canada (BoC) Rate Decision: Markets will look for guidance on monetary policy from Canada’s central bank.
- FOMC Rate Decision: The US Federal Reserve will deliver its much-anticipated policy update, which is expected to dominate market sentiment and drive volatility.
- European session:
Thursday, 30 January 2025
- Asian Session:
- Likely to reflect the lingering effects of the FOMC decision, though no major events are scheduled.
- Key European Event:
- European Central Bank (ECB) Rate Decision will be the highlight of the day, with traders keenly awaiting the ECB’s stance on inflation and monetary policy.
- US Session:
- Release of significant economic data, including:
- Advance GDP figures, providing a comprehensive view of US economic performance.
- Weekly Unemployment Claims, a timely indicator of labor market health.
- Release of significant economic data, including:
Friday, 31 January 2025
- Subdued Asian Session:
- Markets are expected to remain quiet as Lunar New Year celebrations continue across the region.
- Major Data Releases:
- European Session:
- Germany’s Preliminary CPI data will be closely monitored for inflation trends in the Eurozone’s largest economy.
- North American Session:
- Canada will release its GDP data, providing insights into the country’s economic growth.
- In the US:
- Core PCE Price Index: The Federal Reserve’s preferred inflation gauge, critical for shaping market expectations around monetary policy.
- Employment Cost Index, highlighting labor cost trends and their implications for inflation.
- European Session:
Key Takeaways for the Week:
- Central bank decisions, including those from the FOMC, ECB, and Bank of Canada, will be pivotal.
- Data from major economies, including US GDP, China’s PMI, and German CPI, will set the tone for market sentiment.
- Traders should remain cautious of potential liquidity challenges, particularly during the Asian session, as Lunar New Year holidays impact trading volumes.
Stay prepared for a dynamic week ahead, with opportunities and risks emerging across global markets!dministration at the helm.
Categories: Market News
