What's to Come: The US CPI Report and Fed Speakers Take Center Stage in the Upcoming Week.

• Key indicators such as US consumer inflation, consumer spending, and statements from Fed speakers will shape market expectations regarding the Fed's future interest rate decisions.
• The Pound might experience volatility in the upcoming week, with a close eye on wage growth, inflation, and retail sales data.
• Mid-week data from China will impact commodity-linked currencies and the demand for higher-risk assets.

US Dollar

Next week, the US CPI Report will kick off a significant period for the US dollar. This report could strongly influence the December Fed interest rate decision, especially after recent shifts by the Fed. Meanwhile, retail sales figures on Wednesday will also carry substantial weight. A rise in consumption could drive demand-led inflation, potentially pushing the Fed toward a more hawkish rate path. Additionally, investor attention will be drawn to the weekly jobless claims on Thursday, as tight labor market conditions may support wage growth, consumer spending, and demand-driven inflation. Beyond these, various other stats such as producer prices, NY Empire State Manufacturing Index, industrial production, Philly Fed Manufacturing Index, and housing sector numbers will be considered, though their impact may be relatively lower. Throughout the week, it's crucial for investors to monitor statements from Fed speakers, including Fed Vice Chair John Williams, FOMC members Christopher Waller, Loretta Mester, and Mary Daly.

EUR

The upcoming week will see the release of German ZEW Economic Sentiment figures, with market expectations centered on a potential German recession. A change in sentiment toward the economy could briefly affect the EUR/USD pair. Moreover, Eurozone GDP numbers for the third quarter will bear greater significance, along with Eurozone industrial production, trade figures, and inflation data. Weak GDP, trade, industrial production figures, and persistent inflation could influence sentiment toward the economic outlook of the Eurozone and impact the course of the ECB's interest rate strategy. In addition to economic indicators, it's important to consider commentary from ECB Chief Economist Philip Lane and Executive Board members Andrea Enria, Frank Elderson, Luis de Guindos, and ECB President Christine Lagarde.

The Pound

In the week ahead, the UK labor market will take the spotlight, particularly focused on wage growth. Additionally, the UK CPI Report and retail sales numbers will be influential. The data could impact market expectations regarding the timing of a potential BoE rate cut. Furthermore, reactions to the figures may influence market interest in the Pound, underpinning the BoE commentary from Governor Andrew Bailey, Chief Economist Huw Pill, and several MPC members.

The Loonie

Key economic indicators, such as wholesale sales and housing starts, will be observed. However, the focus may shift to economic indicators from China, weekly crude oil reports, and the OPEC monthly report. Furthermore, RMPI numbers for October will also demand attention.

Australian Dollar

Australian business confidence figures will influence the market's view of the Aussie dollar, with potential implications for staffing levels and tight labor market conditions. Additionally, wage growth figures for the third quarter and employment figures for October will impact the Aussie dollar, along with economic indicators from China.

Kiwi Dollar

The Kiwi dollar may experience movement based on electronic card retail sales figures and producer prices for the third quarter, as well as economic indicators from China.

Japanese Yen

Key data, including GDP numbers for Q3, industrial production, and trade figures, will be significant for the Japanese Yen. Deterioration in these areas could sway the Bank of Japan to maintain an ultra-loose monetary policy stance. It's important for investors to monitor BoJ commentary and intervention warnings for further insights.

China

Upcoming indicators, such as industrial production, retail sales, unemployment, and fixed asset sales for October, will be focused upon and could impact commodity currencies and riskier assets based on their performance.