The Forex calendar for the upcoming week is filled with significant events that could impact the global financial markets. Here’s a breakdown of what to expect:
On Monday, Mainland China will observe a market holiday, which could lead to reduced trading activity in the region.
Moving on to Tuesday, the Reserve Bank of Australia (RBA) will release its meeting minutes. The central bank’s tone is expected to be less hawkish compared to the previous meeting, as Governor Bullock highlighted that rates will remain unchanged for the time being. Markets will closely analyze the minutes for further insights.
Wednesday will see the Reserve Bank of New Zealand (RBNZ) announcement. Analysts are anticipating a rate cut, with a majority expecting a 50bps reduction. The RBNZ’s recent rhetoric has been less hawkish, and recent GDP data indicates a need for further easing.
Also on Wednesday, the Federal Open Market Committee (FOMC) will release its meeting minutes. The FOMC recently cut rates by 50bps, signaling confidence in inflation returning to the 2% target. Fed Chair Powell hinted at potential future rate cuts, depending on economic data.
Thursday brings the European Central Bank (ECB) minutes. The ECB recently cut rates and reiterated its data-dependent approach. Inflation forecasts remain below target, and President Lagarde emphasized a cautious stance.
Norway will release its Consumer Price Index (CPI) data on Thursday. Expectations are for an increase in both headline and core CPI metrics, reflecting a potential uptick in inflation.
Additionally, Thursday will see the release of the US CPI data. Analysts predict a slight rise in headline CPI, while core CPI is expected to cool. Fed Chair Powell expressed confidence in inflation returning to target and highlighted the importance of upcoming economic reports in shaping policy decisions.
On Friday, the Bank of Korea (BoK) will announce its rate decision. Recent data from South Korea suggests a need for a rate cut, as GDP contracted and CPI softened. BoK Governor Rhee hinted at a dovish stance, but the decision remains uncertain.
Canada will release its Jobs Report on Friday. The data will be crucial for the Bank of Canada’s monetary policy decisions, as policymakers expressed concerns about downside risks to the economy and the labour market.
Lastly, the UK will release its August GDP data on Friday. Expectations are for a modest increase in growth, driven by manufacturing and construction rebounding. The release is unlikely to have a significant impact on Bank of England policy decisions, with a rate cut already priced in for November.
Overall, the upcoming week is filled with key economic events that could shape global market sentiment and monetary policy decisions. Traders and investors should stay informed and be prepared for potential market volatility.