In addition to inflation data, jobs numbers, and global PMIs, this week will see major central banks, including the Fed, SNB, BoE, and ECB, in focus.
The US Federal Reserve (the Fed) is anticipated to remain on pause this Wednesday, leaving the Fed Funds target range at 5.25%-5.50% for a third consecutive meeting. Market pricing suggests around 110bps of cuts for 2024.
The decline in the already historically low unemployment rate suggests that while the labor market is cooling, it remains exceptionally tight.
In Australia and Canada, monetary policy announcements held steady this week, with statements possibly less hawkish than expected. The Reserve Bank of India also maintained its repo rate at 6.50% but indicated that it would remain focused on the withdrawal of policy accommodation, considering strong growth and upside inflation risks.
This week’s focus on central banks and their monetary policies, combined with important economic indicators, is set to make it a busy one for traders.
