Week Ahead | Central Banks to drive the market

19th February 2018 - 23rd February 2018

Monday

• BoE’s Governor Carney Speech 

On Monday, China, US, and Canada will be on holidays , which means no data will is due to be released, while the the Bank of England Governor Mark Carney is scheduled to speak about leadership and values at Regent's University.

Tuesday

• EUR ZEW Survey Economic Sentiment, Consumer Confidence

On Tuesday, markets should continue to be preoccupied with the specters of rising inflation and interest rates as reflected in government bond yields. Of more immediate concern, however, will be the release of minutes from three major central banks detailing their most recent monetary policy meetings.

Wednesday

• JPY All Industry Activity Index
• EUR ECB Monetary Policy’s ECB Meeting, Markit Manufacturing PMI
• GBP ILO Unemployment Rate, Claimant Count Rate, Inflation Report Hearings
• USD Markit Manufacturing PMI, FOMC Minutes

On Wednesday, Federal Reserve minutes will be released from its FOMC meeting at the end of January, in which the central bank kept rates steady. Though new inflation data has emerged since then, any substantive discussion of inflation during that meeting will provide some indications as to the Fed’s potential policy trajectory.

Thursday

• EUR IFO Current Assessment, ECB Monetary Policy Meeting Accounts
• GBP Gross Domestic Product
• USD Initial Jobless Claims, Continuing Jobless Claims

On Thursday, the European Central Bank will release its own monetary policy meeting accounts on Thursday. The euro has remained exceptionally buoyant, especially against a heavily weakened US dollar, on a rising Eurozone economy and keen anticipation of monetary policy tightening by the ECB.

Recently, the central bank hinted that the era of extraordinarily loose monetary policy is essentially over, which lends further support for potentially more hawkishness from policymakers on a global scale.

Friday

• EUR Gross Domestic Product, Consumer Price Index
• CAD Bank of Canada Consumer Price Index

On Friday, the Gross Domestic Product will release which measures the total value of all goods and services produced by Germany. The GDP is considered as a broad measure of the German economic activity and health

The core Consumer Price Index released by Eurostat is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services excluding the volatile components like food, energy, alcohol and tobacco. The core CPI is a key indicator to measure inflation and changes in purchasing trends

Consumer Price Index Core is released by the Bank of Canada “Core” CPI excludes fruits, vegetables, gasoline, fuel oil, natural gas, mortgage interest, intercity transportation, and tobacco products. These volatile core 8 are considered as the key indicator for inflation in Canada