Central Banks Week… and the dollar awaits inflation data and Fed decisions

Expected economic data in the currency market

During this week, many important economic events and data will be issued, which will have an impact on the trading of a number of currencies, most notably the Australian dollar, the US dollar, the euro, and the sterling. The most important events are as follows:

  • British labor market data.
  • US inflation data.
  • Economic growth data in Britain.
  • US interest rate decision.
  • New Zealand economic growth data.
  • Australian labor market data.
  • Swiss interest rate decision
  • British monetary policy decisions.
  • European monetary policy decisions.
  • US unemployment claims data.
  • Manufacturing and service sector data in Europe, Britain, and the United States.

main events

US inflation data

It will be issued on Tuesday, and expectations indicate that US inflation will continue to slow to 3.1% by the end of last November, and core inflation may stabilize at 4% levels. Therefore, currency markets will monitor the release of these data, which will strongly affect the movements of the US dollar and the US Federal Reserve’s interest rate decisions, and if the data comes… Higher than expected, this will have a positive impact on the movements of the US dollar, while if the data comes below expected, this may have a negative impact on the movements of the dollar against other currencies.

Monetary policy decisions of the US Federal Reserve

It will be issued on Wednesday at 7 pm GMT, and expectations indicate that the US Federal Reserve will keep interest rates unchanged, and then the focus of currency markets will be on the interest statement and the press conference issued by Bank Governor Jerome Powell, as they may include any hints about the bank’s monetary policy. In its upcoming meetings and whether or not it is prepared to raise interest rates again, this will be strongly reflected in the movements of the US dollar against other currencies.

Swiss monetary policy decisions

These decisions are scheduled to be issued on Thursday at the beginning of European trading, and currency market expectations indicate that the Swiss National Bank may keep the interest rate unchanged at the level of 1.75% in light of the slowdown in Swiss inflation during the recent period, and therefore, the markets will monitor the Swiss interest statement and the press conference. For the bank governor to try to infer any future indicators related to upcoming monetary policy decisions, which will be clearly reflected in the movements of the Swiss franc against other currencies.

Monetary policy decisions issued by the Bank of England

It will be issued on Thursday at 12 pm GMT, and currency market expectations indicate that the Bank of England will keep interest rates unchanged near the 5.25% level in light of the slowdown in British inflation and the damage to the British economy due to high interest levels. Therefore, currency markets will monitor the interest statement and statements. Bank Governor Andrew Bailey, and the hints they may contain about future monetary policy decisions and the extent of the bank’s readiness to raise interest rates again, which will have clear repercussions on the movements of the sterling against other currencies.

European interest rate decisions

It includes several indicators, namely (the interest decision and the European Central Bank press conference). The interest decision will be issued at exactly 13:15 GMT, while it will be issued followed by the European Central Bank press conference at exactly 13:45 PM GMT. Expectations indicate that it may be Stabilizing the European interest rate to settle at the level of 4.50%. However, traders will focus on the monetary policy statement and the press conference of the European Central Governor in an attempt to search for any indications regarding raising the European interest rate again, and therefore if the press conference includes any positive hints that would support raising the European interest rate. Again, it could lead to the euro rising against major currencies, and vice versa.

Manufacturing and service sector data in Europe, Britain, and the United States

These data are issued at the beginning of trading on Friday and until the end of the day, as the data begins with the release of manufacturing and service sector data in France, then Germany, which are the largest economies in Europe, then they are followed by the release of data in Britain and the United States, and these data will have a strong impact on the euro’s movements, And the sterling, and the US dollar, since these data always show the extent of damage or recovery of these sectors within countries, and therefore, the positivity of the data reflects positively on the movements of currencies in the markets, and the negativity of the data and its being worse than expected reflects negatively on the movements of these currencies.

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The dollar is awaiting labor market data, and currencies are awaiting very important data

2023-12-10 14:27:26
#Central #Banks #Week.. #dollar #awaits #inflation #data #Fed #decisions

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