Looking Ahead: Anticipating a Federal Reserve Interest Rate Reduction and Spotlight on the Chinese Economy

Highlights

• Economic data such as US retail sales, labor market figures, and Federal Reserve statements will impact predictions regarding a potential interest rate cut by the Fed in March.
• The economies of the euro area and the UK will be closely observed, with economic indicators playing a key role in shaping sentiment surrounding potential interest rate cuts by the Bank of England (BoE) and the European Central Bank (ECB).
• On Wednesday, economic indicators from China will affect market risk sentiment.

The US Dollar

Economic Data Impacting Investor Sentiment

Throughout the Week, a series of economic indicators and eventful FOMC member commentary could influence the US dollar's performance.

The EUR

Economic Indicators and ECB Policy Impact

Watch for key German and Eurozone economic indicators as well as ECB monetary policy and commentary, all of which will shape the outlook for the EUR/USD.

The Pound

Economic Data and BoE Influence

Stay tuned for UK labor market figures, inflation numbers, and retail sales data, all of which could impact expectations on potential Bank of England interest rate cuts.

The Loonie

BoC Survey and Economic Indicators

The week starts with the BoC Business Outlook Survey and later features crucial inflation and retail sales figures with potential implications for the Bank of Canada’s policy decisions.

The Australian Dollar

Influential Economic Indicators

Australian consumer confidence, labor market data, and external economic factors, particularly from China, will play a role in shaping the outlook for the Australian dollar.

The Kiwi Dollar

Key Economic Data for the New Zealand Dollar

NZIER Business Confidence, electronic card retail sales, and business PMI figures will be closely observed, potentially impacting expectations for the Reserve Bank of New Zealand (RBNZ) interest rate decisions.

The Japanese Yen

Inflation and BoJ Policy Focus

Watch for Japanese inflation, industrial production, and machinery orders data, as well as Bank of Japan guidance, all of which may influence the Japanese yen and the BoJ's policy stance.

Out of China

Data and Stimulus Impact

China’s economic indicators, especially Q4 GDP, industrial production, retail sales, fixed asset investment, and unemployment numbers, as well as stimulus discussions, will be critical for market sentiment.