The high impacted data and events scheduled ahead –
Tuesday – Tokyo CPI, BOJ Gov speech
The weekly economic calendar begins with Tokyo Core CPI. The data is expected to be 2.5 percent compared to the previous reading of 1.6 percent. The information can have a positive effect on the gene. The latest inflation statistics from Tokyo will give investors an idea of whether the Bank of Japan will raise interest rates this year.
The weekly economic calendar begins with Tokyo Core CPI a. The data is expected to be 2.5 percent compared to the previous reading of 1.6 percent. The information can have a positive effect on the gene. The latest inflation statistics from Tokyo will give investors an idea of whether the Bank of Japan will raise interest rates this year.
China may point out the same day that the Chinese services PMI for February is released. The data is forecast at 52.9 compared to 52.7 previously.
The US ISM Services PMI is also out, which could have a negative impact on the dollar as it is forecast at 52.9, slightly lower than the previous 53.4.
Wednesday – Fed Chair Powell Testifies, Canada Policy.
The British government will unveil its latest budget on Wednesday. The chancellor has made it clear that he wants to cut taxes on workers to win back voters ahead of a general election that will almost certainly be a disaster for the ruling party.
Markets will depend on which taxes are cut. and how deep. Significant cuts to income tax or national insurance could be good news for the pound, as they would boost consumption and inflation, increasing pressure on the Bank of England to keep interest rates high for longer. However, there is little room for drastic tax changes, so reactions can be relatively small.
In Canada, the central bank ends its meeting on Wednesday and is expected to leave the benchmark interest rate unchanged at 5.00 percent.
Later in the day, Federal Reserve Chairman Jerome Powell delivered his semiannual statement on monetary policy to a House committee on Wednesday and to a Senate panel on Thursday.
Thursday – ECB POLICY
The ECB meets on Thursday. Markets expect policyholders to keep rates unchanged at 4.50 percent.
The ECB has delayed rate cut talks and officials say they need more evidence that inflation is returning to its 2 percent target, but markets still expect Frankfurt to start cutting of interest percentages at the end of this year. The first step is expected in June.
Friday’s eurozone inflation data appeared to support the ECB’s cautious stance. Consumer price inflation slowed more slowly than expected in February, but core inflation also eased more slowly than expected.
The most important concern for the ECB is that wage inflation remains too high and threatens to fuel price pressures for longer.
As well as US unemployment advertisements to be released on the same day, the data is expected to be 212,000 from 215 last year, which could have a neutral impact on the dollar
Friday- US Non-Farm Employment Change, Employment Change
Markets will react strong on the monthly jobs report is eagerly awaited as investors try to gauge the timing of the Federal Reserve’s first tax rate. Predictions are currently being made in June on hopes that the central bank may be planning a soft landing for the economy.
Signs of continued strength in the labor market may put off investors as they worry about how a stronger-than-expected economy could push inflation back up if the Fed eases too soon.
Economists expect the economy to add 190,000 jobs this year compared to 353,000 increase in February after January, which is the biggest of the year. The unemployment rate is expected to remain steady at 3.7 percent, while wage growth is expected to slow.
Saturday – China CPI y/y
China released its consumer price inflation number on Saturday, with a forecast of 0.2% deflation to -0.8%. Information can have a positive effect on base metals. PPI is expected to shrink to 2.6 percent from 2.5 percent previously..
Commodity Samachar
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Also Read: Crude up 1.92%E, OPEC+ extends output cuts will support further , Eurozone inflation, China PMI to watch.
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