Market Event, General

Week Ahead: world's markets await as more data is delivered

George Walker, Friday, 19 March 2021

Week-Ahead-220321-Central-Banks

With recent data out of China steadily improving, the People's Bank of China kick off our week with their latest interest rate announcement overnight into Monday. While there is no change expected it could show intent for any future hikes and will set the tone for the first day of trading.
 

Traders await more from BoE

Bank of England governor Andrew Bailey speaks twice this week with the first being Tuesday on UK Unemployment. Until now, the Bank of England has unanimously voted to keep interest rates and monetary policy unchanged however, following last week's decision, traders are keen to hear from the Governor for some indicator of future guidance.
 

Wednesday's data comes in hot

UK Consumer Price Index kicks off Wednesday's session as Central Banks continue to contemplate inflation during monetary policy meetings. Figures better or worse-than-expected could cause volatility in GBP ahead of the European markets opening.

As the day progresses, traders will be focusing on preliminary Manufacturing and Services PMI data throughout the day, from Germany and the Eurozone, the UK, and the United States. Although only indicative preliminary data, it still measures the overall condition of sales and employment in the manufacturing and services sectors, and in the current economic climate. Nations will want to continue to see positive numbers to indicate economic recovery.

US Durable Goods Orders are released an hour ahead of the US open. Durable Goods are typically goods designed to last for more than three years and often require larger investments, and are thus a good indicator of economic strength and disposable income.

Finally, wrapping up the day, Fed Chair Powell testifies just ahead of crude oil inventories in the afternoon.

Thursday sees the start of a 2-day European Council Meeting. The importance of this is not to be underestimated as it will be attended by Heads of States discussing a variety of topics, such as vaccine rollout, testing, and lifting restrictions. Climate change and security are also hot topics on the agenda.
 

SNB shares its outlook for the Franc

The Swiss National Bank will be the latest central bank to update on interest rates and monetary policy in the morning. The SNB has set rates negative, currently at -0.75% with the aim of limiting the economic damage cause by the pandemic. Despite this, the SNB has previously mentioned a willingness to intervene further as they believe the CHF is still currently valued too high in the FX market. Traders will need to pay careful attention to the press conference which follows the initial announcement to see whether they plan on implementing further measures.

The second speech from Bank of England Governor gets underway mid-morning ahead of the US Initial and Continuing Jobless Claims, followed by the all-important Gross Domestic Product data from the United States in the afternoon. Although US markets cheered the Federal Reserve's decision to keep policy unchanged for the foreseeable future, GDP numbers could cause volatility as markets trade near record highs.

UK Retail Sales and US Personal Income and Spending updates are the only notable data releases on the final trading day of the week.

All times indicated are GMT.
 


Economic Calendar

(All times are GMT)

Monday, 22nd March

01:30 CNY PBoC Interest Rate Decision
05:00 JPY Coincident Index
05:00 JPY Leading Economic Index
09:00 EUR Current Account
12:30 USD Chicago Fed National Activity Index
14:00 USD Existing Home Sales
17:00 USD Fed's Daly Speech
20:00 NZD Westpac Consumer Survey

UK Company Announcements:

Centamin
Kingfisher

US Company Announcements:

N/A

Tuesday, 23rd March

07:00 GBP ILO Unemployment Rate
07:00 GBP Claimant Count Rate
07:00 GBP Claimant Count Change
07:00 GBP Average Earnings Including Bonus
07:00 GBP Average Earnings Excluding Bonus
09:55 GBP BoE's Cunliffe Speech
11:50 GBP BoE's Governor Baily Speech
12:30 USD Current Account
12:55 USD Redbook Index
14:00 USD Richmond Fed Manufacturing Index
14:00 USD New Home Sales
17:15 CAD BoC's Gravelle Speech
18:45 USD Fed's Williams Speech
20:30 USD API Weekly Crude Oil Stock
21:45 NZD Trade Balance
21:45 NZD Imports
21:45 NZD Exports
22:00 AUD Commonwealth Bank Services PMI Preliminary
22:00 AUD Commonwealth Bank Manufacturing PMI Preliminary
22:00 AUD Commonwealth Bank PMI Composite Preliminary
23:50 JPY BoJ Monetary Policy Meeting Minutes

UK Company Announcements:

N/A

US Company Announcements:

Adobe
IHS Markit Ltd
Gamestop Corporation

Wednesday, 24th March

00:30 JPY Jibun Bank Manufacturing PMI Preliminary
07:00 GBP Consumer Price Index
07:00 GBP Core Consumer Price Index
07:00 GBP Retail Price Index
07:00 GBP Producer Price Index – Input
07:00 GBP Producer Price Index – Output
07:00 GBP PPI Core Output
08:00 EUR Non-Monetary Policy ECB Meeting
08:30 GER Markit Manufacturing PMI Preliminary
08:30 GER Markit Services PMI Preliminary
08:30 GER Markit PMI Composite Preliminary
09:00 EUR Markit Manufacturing PMI Preliminary
09:00 EUR Markit Services PMI Preliminary
09:00 EUR Markit PMI Composite Preliminary
09:30 GBP Markit Manufacturing PMI Preliminary
09:30 GBP Markit services PMI Preliminary
12:30 USD Durable Goods Orders
12:30 USD Durable Goods Orders ex-Transportation
12:30 USD Durable Goods Orders ex-Defence
12:30 USD Markit Manufacturing PMI Preliminary
12:30 USD Markit Services PMI Preliminary
12:30 USD Markit PMI Composite Preliminary
14:30 USD EIA Crude Oil Stocks Change
15:00 EUR Consumer Confidence Preliminary
17:35 USD Fed's Williams Speech

UK Company Announcements:

Pendragon
Bellway

US Company Announcements:

General Mills

Thursday, 25th March

24hr EUR European Council Meeting
07:00 GER Gfk Consumer Confidence Survey
08:30 CHF SNB Interest Rate Decision
08:30 CHF SNB Monetary Policy Assessment
09:00 EUR Economic Bulletin
09:30 GBP BoE's Governor Bailey Speech
12:30 USD Initial Jobless Claims
12:30 USD Continuing Jobless Claims
12:30 USD Gross Domestic Product
12:30 USD Gross Domestic Product Annualised
12:30 USD Personal Consumption Expenditures Prices
12:30 USD Core Personal Consumption Expenditures
14:30 USD Fed's Williams Speech
14:30 USD EIA Natural Gas Storage Change
15:00 USD Kansas Fed Manufacturing Activity
23:50 JPY Tokyo Consumer Price Index
23:50 JPY Tokyo CPI ex-Food & Energy
23:50 JPY Tokyo CPI ex-Fresh Food

UK Company Announcements:

N/A

US Company Announcements:

N/A

Friday, 26th March

24hr EUR European Council Meeting
07:00 GBP Retail Sales
07:00 GBP Retail Sales ex-Fuel
09:00 GER IFO – Business Climate
09:00 GER IFO – Expectations
09:00 GER IFO – Current Assessment
12:30 USD Personal Income
12:30 USD Personal Spending
12:30 USD Personal Consumption Expenditures – Price Index
12:30 USD Core Personal Consumption Expenditures – Price Index
14:00 USD Michigan Consumer Sentiment
17:00 USD Baker Hughes US Oil Rig Count

UK Company Announcements:

N/A

US Company Announcements:

N/A

 

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