Trading the week ahead – Central bank decisions and key economic data in focus [Video]
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This week we're looking at a few key opportunities in the markets, starting with Tuesday's German economic sentiment. We're particularly interested in the ZEW data to gauge any shifts in sentiment that might affect the Euro, especially considering the recent political climate in Europe. While any positive news might lift the Euro slightly, the backdrop of political uncertainty means any rally might be short-lived.
The UK CPI data on Wednesday will be another crucial point, as inflation figures play a significant role in the Bank of England's policy decisions. With Deputy Governor Ramsden recently moving to a rate cut stance, weaker inflation could accelerate the likelihood of rate cuts, potentially leading to pound selling. This is an important moment to watch for any further dovish shifts among other members which could impact the pound significantly.
As we move into Thursday, the Swiss National Bank's decision will take center stage. With the market heavily anticipating a rate cut, any deviations from this expectation could cause significant movements in the Swiss Franc.
Finally, the week will also feature important data releases like the Japanese core CPI, which could influence the Bank of Japan's policy direction, especially if the print deviates significantly from expectations. High inflation could pressure the BoJ to adjust its ultra-loose monetary stance sooner than expected, potentially strengthening the Yen.
Author
Giles Coghlan LLB, Lth, MA
Financial Source
Giles is the chief market analyst for Financial Source. His goal is to help you find simple, high-conviction fundamental trade opportunities. He has regular media presentations being featured in National and International Press.
