Global financial markets ended the previous week on a more optimistic note. Investor sentiment improved as trade updates began to show glimmers of progress and macroeconomic data generally exceeded expectations. The standout event was the stronger-than-forecast U.S. employment report released on Friday, which helped lift major U.S. equity indices and provided a positive backdrop heading into the new trading week.
Looking ahead, the upcoming week will be dominated by central bank decisions and commentary, particularly from the Federal Reserve and the Bank of England, both of which are scheduled to deliver monetary policy updates. In addition to rate decisions, investors will also be closely monitoring a flurry of speeches from key central bank officials across multiple jurisdictions. Trade negotiations and tariffs remain an ever-present concern, but there is cautious optimism that further details may emerge, potentially offering some clarity to markets.
The calendar features a blend of high-impact economic data, policy updates, and scheduled public holidays in various regions. Below is a detailed breakdown of the most important scheduled events across global markets, arranged by day:
📅 Monday, 5 May 2025
- Holiday-Reduced Liquidity:
- Several major financial centers will observe public holidays, leading to lighter trading volumes and potentially thinner market conditions, particularly during the early sessions.
- Switzerland – Consumer Price Index (CPI):
- Swiss inflation figures will be released during the European session, offering insights into domestic pricing pressures. These numbers will be key for expectations around future Swiss National Bank policy.
- United States – ISM Services PMI:
- Early in the North American session, the closely watched ISM Services Purchasing Managers Index will provide a snapshot of the health of the U.S. services sector, a critical component of overall economic activity.
📅 Tuesday, 6 May 2025
- Subdued Data Flow Across Regions:
- No major economic releases are scheduled in the Asia-Pacific, European, or U.S. sessions, setting the stage for a day likely driven by general market sentiment and positioning.
- Switzerland – Central Bank Commentary:
- Swiss National Bank Chairman Martin Schlegel is set to speak during the London session. While no immediate policy shifts are expected, any forward-looking remarks could influence market expectations for upcoming meetings.
- Canada – Ivey PMI:
- The Ivey Purchasing Managers Index will be released later in the day. While it is not always a major market mover, deviations from expectations could impact the Canadian dollar and influence local rate expectations.
📅 Wednesday, 7 May 2025
- New Zealand – Labor Market Update:
- The trading day kicks off with employment statistics from New Zealand, offering a look at domestic labor conditions and potential implications for Reserve Bank policy.
- New Zealand – Central Bank Speech:
- RBNZ Deputy Governor Christian Hawkesby is scheduled to speak later in the day. Any discussion of inflation risks or policy stance may draw attention from regional market participants.
- United Kingdom – Construction Sector Performance:
- UK Construction PMI figures are due early in the London session. Though less influential than the services PMI, these numbers can still reflect broader economic trends and construction sector health.
- United States – Federal Reserve Rate Decision:
- The marquee event of the week comes midweek, as the Federal Reserve delivers its latest policy announcement. While rates are expected to remain unchanged, the accompanying statement and press conference will be scrutinized for any signals on timing of future adjustments and assessment of inflation and employment conditions.
📅 Thursday, 8 May 2025
- Asia-Pacific – Quiet Economic Schedule:
- The session in Asia is expected to be uneventful in terms of data releases, leaving traders focused on developments from other regions or possible overnight headlines.
- United Kingdom – Bank of England Policy Decision:
- The Bank of England will take center stage in the European session, with markets widely anticipating a rate cut amid ongoing signs of economic softness and persistent disinflation. The vote split and economic projections will also be closely analyzed.
- United States – Weekly Jobless Claims:
- As usual, Thursday’s U.S. session will include the release of weekly unemployment claims. This data remains a key barometer of labor market trends and will be examined for any signs of cooling in job creation or layoffs.
📅 Friday, 9 May 2025
- Asia-Pacific – Central Bank Speakers in Focus:
- No major economic data is due during the Asian session, but attention may turn to remarks from various central bank officials scheduled to speak throughout the day.
- United Kingdom – Bank of England Governor Bailey Speaks:
- Governor Andrew Bailey is expected to address the public and markets during the London session. His tone and remarks following the policy decision may help clarify the Bank’s forward guidance and policy outlook.
- Canada – Employment Report:
- Canada will release its latest labor market figures early in the North American session. These numbers are particularly significant given the recent mixed signals from the Canadian economy and may sway expectations for Bank of Canada action.
- United States – Central Bank Speakers (Multiple):
- A barrage of U.S. Federal Reserve officials are scheduled to speak throughout the day, including Fed Governors and regional presidents such as Kugler, Goolsbee, Waller, Williams, Cook, Hammack, and Musalem. Markets will be attuned to any consistent messaging or divergence in views regarding the economic outlook, inflation, and timing of future policy shifts.
Summary:
The upcoming week is packed with central bank decisions, particularly from the Federal Reserve and the Bank of England, along with a variety of employment-related updates and PMI releases. While early parts of the week may see reduced liquidity due to holidays, momentum is likely to build as the week progresses, culminating in several key policy and data events that could shape the direction of global asset classes. Traders and investors will be paying close attention not just to the decisions themselves, but to the tone, forward guidance, and consistency of messaging from central bankers across the board.
