Once again, it was a more muted trading session in New York to close out the week. However, traders are braced for more volatility ahead, with several key inflation data prints scheduled and some markets poised at sensitive levels.
The Yen fell again on Friday and now sits perilously close to the key 160 psychological level against the greenback. Traders are wary of official action if it starts to fall further, which could make for a much busier start to the week than most are expecting.
Undoubtedly, the US PCE Price Index will be the headline data release of the week, but there are plenty of other scheduled events that should move markets before we hit that data release on Friday.
Here is our usual day-by-day breakdown of the major risk events this week:
It looks like being a quiet start to the week with a relatively quiet calendar day. Nothing of note in the Asian session—Yen moves dependent—and just the German Ifo data and a speech from the FOMC’s Waller in the London day. We also hear from the Bank of Canada’s Tiff Macklem later in the day, which could see some moves in the Loonie.
The first two sessions of the day have little scheduled to move markets. However, we do have the first tier 1 inflation number once New York opens when the Canadian CPI data is released in Ottawa. US numbers kick off in earnest as well on Tuesday with the CB Consumer Confidence data and the Richmond Manufacturing Index numbers due out.
Australian markets will be firmly in investor focus on the Asian open with the key CPI numbers due out early in the day. Once again, the European session has little to offer traders, but we do have the latest US New Home Sales and Crude Oil inventory numbers out later in the New York session.
Asian markets have little scheduled on Thursday, but sterling traders will be on their guard once Europe opens with Bank of England Governor Andrew Bailey due to speak on the Financial Stability report. The New York session looks set to be busy with Quarterly GDP, Durable Goods, Final GDP, and Pending Home Sales numbers due out.
The initial focus for the Asian session will be on Japan with the latest Tokyo CPI numbers due out early in the day. Spanish Flash CPI numbers could see some volatility in the Euro once the London session kicks off, but the big moves are once again likely to come once New York comes in. The main event will be the Core PCE Price Index release, but we also have Canadian GDP numbers and Revised University of Michigan data due out for traders to digest before we hit the weekend.
