Upcoming Week: RBA, Fed, and ECB Meeting Insights with BoE in the Spotlight

In the upcoming week, the focus will be on central banks. The Bank of England is anticipated to provide further insights following the release of recent inflation and retail sales data.  

Highlights

• The FOMC Meeting Minutes and speeches by Fed officials will offer further clarity on the Fed's interest rate objectives.
• Initial private sector PMI data for November will offer an overview of the global economy's performance halfway through the fourth quarter.
• The Autumn Statement and speeches by Bank of England representatives will draw attention to the performance of the Pound.  

US Dollar:

The focus on Tuesday will be the FOMC meeting minutes. Fed Chair Powell's recent comments hinted at potential future actions, despite conflicting inflation and retail sales data. The minutes could shed more light on the Fed's stance on rate hikes.

Wednesday will bring attention to core durable goods and initial jobless claims. An increase in jobless claims would confirm a weakening labor market, while Michigan consumer sentiment figures will also be significant. Any changes in inflation expectations and sentiment could signal shifts in consumer spending outlook.

The week will conclude on Friday with preliminary private sector PMIs, with a particular focus on the services PMI due to its substantial contribution to the US economy. Additionally, investors should consider speeches by Fed officials throughout the week.

EUR:

The week kicks off with a focus on German producer prices, where a less significant drop could indicate increased demand. Thursday will bring preliminary private sector PMIs for France, Germany, and the Eurozone, with a less pronounced contraction supporting EUR demand. Attention should be paid to sub-components such as new orders, prices, and optimism.

Friday will spotlight the German economy, with German business sentiment and Q3 GDP figures taking precedence. Unfavorable numbers could impact the EUR/USD exchange rate. ECB commentary and reports, as well as speeches by ECB officials, will also require consideration, particularly regarding any discussions on potential rate cuts.

Pound:

Wednesday will see the release of the Bank of England Financial Stability Report, which may raise concerns about lending and defaults, impacting the macroeconomic environment. However, the UK Autumn Statement could mitigate the report's impact if it includes measures to support the economy. Speeches by BoE officials Andrew Bailey and Huw Pill will also be notable.

Loonie:

Monday will bring consumer price inflation figures, offering direction for the Loonie. Retail sales figures on Friday will also be influential. Bank of Canada speeches, particularly by Governor Macklem on Thursday, will require monitoring, given the focus on inflation and consumption.

Australian Dollar:

The RBA Monetary Policy Statement on Tuesday will influence the market's perception of the Australian dollar, potentially revealing the RBA's approach to inflation. Developments in China's efforts to support economic growth could also impact the Aussie dollar.

Kiwi Dollar and Japanese Yen:

Friday's retail sales figures will directly impact the Kiwi dollar, while inflation and private sector PMIs will influence the Japanese Yen on the same day.

China and PBoC:

On Monday, the PBoC will set Loan Prime Rates, with market sentiment potentially responding to any lack of further policy easing amidst the ongoing housing crisis.