The week ahead looks packed with economic data from all corners of the globe, and traders should be ready for a potentially volatile ride as key figures drop across the major economies. Here’s what’s on the radar:
We start Monday with important data from China, including Industrial Production and Retail Sales. Both are key indicators of China’s domestic and export-driven economic health. With concerns growing over China’s post-COVID recovery losing steam, these figures could weigh heavily on global risk sentiment, particularly in commodities like oil and metals, as well as AUD and NZD which are heavily exposed to Chinese demand.
Tuesday shifts focus to Australia as the Reserve Bank of Australia (RBA) takes the stage with its Interest Rate Decision and Press Conference. The RBA has held rates steady recently but remains under pressure as inflation remains stubborn and growth slows. Any unexpected guidance could spark volatility in AUD pairs. Later in the day, attention turns to Canada with the release of Core and Headline CPI. With the Bank of Canada holding rates but keeping the door open to further tightening if inflation stays sticky, this release could set the tone for CAD going forward.
On Wednesday, the spotlight moves to the UK Consumer Price Index (CPI) release. Inflation has remained a thorn in the side of the Bank of England, keeping rate cut expectations on hold. With the market on edge over when the BoE might shift its policy stance, this print could fuel GBP volatility across the board, especially if it comes in hotter or softer than expected.
Thursday delivers one of the most event-heavy sessions of the week. Traders will be watching the Eurozone, UK, and US PMI data closely. PMI figures provide a forward-looking view of economic health across manufacturing and services. Weakness here could reinforce fears of slowing global growth, while stronger readings could bolster risk sentiment. New Zealand’s Budget Release will also be of interest, particularly for NZD traders, with Retail Sales data later that night adding to the picture of domestic demand.
Friday wraps up the week with UK Retail Sales, providing another read on the health of the UK consumer. Given the BoE’s focus on inflation and economic resilience, this data could further shape expectations for future policy moves.
Across the board, the theme this week is economic momentum versus inflation pressures. With markets still adjusting to shifting central bank expectations, these data points could drive sharp repricing in FX, indices, and commodities.
Volatility is likely, so stay disciplined, manage your risk, and as always; trade safe.