It was a huge week for financial markets last week, with some key interest rate decisions delivered from major central banks that lifted volatility alongside the continuing geopolitical concerns generated by the ongoing and expanding conflict in the Middle East.
Yen will likely remain in focus for FX markets this week after the Bank of Japan raised interest rates on Friday but then checked Yen prices later in the day after the Yen fell. The currency could be particularly vulnerable in the first half of the week as Japanese markets are closed from Monday to Wednesday, and liquidity in the Asian sessions will likely be significantly lower.
The event calendar is much quieter this week, with no significant data releases due out of the US or Europe. However, there are some key data points due for release from other jurisdictions, the Swiss National Bank is set to update the market on its latest rate decision, and there is a raft of central bankers scheduled to speak as the week progresses.
Here is our usual day-by-day breakdown of the major risk events this week:
It is a quiet calendar start to the trading week on Monday, with little in the way of data releases scheduled; however, speeches from the ECB’s Christine LaGarde and the Bank of Canada’s Tiff Macklem may see some moves in their respective markets.
Again, there is little in the way of data scheduled on Tuesday; however, we are set to hear from more central bankers as the day progresses, with the RBA’s Michele Bullock and the ECB’s Christine LaGarde set to speak in their respective sessions, while later in the day we hear from Fed members Williams, Jefferson, and Barkin.
Wednesday sees a raft of Flash Manufacturing and Services PMI data releases across the sessions, with numbers due from Australia, France, Germany, the EU, the UK, and the US.
Thursday looks to be the busiest day in terms of economic updates, with Australian Employment numbers due out in the Asian session, followed by the key Swiss National Bank interest rate call soon after the London open. The New York session sees the release of Canadian Retail Sales data and the usual Weekly Unemployment Claims numbers out of the US.
It is a quiet calendar day to close out the trading week on Friday. There is nothing of note scheduled in the Asian session; however, there will be a focus on UK markets during the European time zone, with Bank of England Governor Andrew Bailey set to speak. The US session sees the release of US Durable Goods data and the Revised University of Michigan numbers, but apart from that, many traders will be hoping for a smoother end to the week than they have seen recently.
Risk Warning: Trading in securities involves significant risk. Prices may fluctuate and securities can become entirely valueless. You may incur losses that exceed your potential profits, and in some cases, losses may exceed the amount you have deposited. Securities, futures, options, and contracts for differences are complex financial instruments and are not suitable for all investors. Engaging in such transactions requires a sound understanding of the associated risks. Please read and ensure you fully understand our Risk Disclosure.
Our leverage is dynamic and may change at any time. Such changes may affect your positions and margin requirements. You are responsible for monitoring your positions and maintaining sufficient margin at all times
