The Week Ahead: Central Banks and COVID-19 in Focus alongside a busy Economic Calendar

The Economic Calendar

On the Macro

It’s a quieter week ahead on the economic calendar, with 45 stats in focus in the week ending 10^th December. In the week prior, 86 stats had been in focus.

For the Dollar:

On Wednesday, JOLT’s job openings will be on focus ahead of the weekly jobless claims on Thursday.

Expect both sets of numbers to draw interest following last week’s disappointing NFP numbers.

At the end of the week, however, November inflation figures and prelim consumer sentiment figures for December will also provide direction.

In the week, the U.S Dollar Index rose by 0.03% to 96.089.

For the EUR:

The German economic is in focus at the start of the week, with factory orders and industrial production figures due out.

On Tuesday, ZEW Economic Sentiment figures for Germany and the Eurozone and Eurozone GDP numbers will also be in focus.

Through the 2^nd half of the week, the focus returns to the German economy, with trade and inflation figures due out.

For the week, the EUR fell by 0.02% to $1.1315.

For the Pound:

It’s a relatively quiet week ahead on the economic calendar.

Early in the week, BRC retail sales figures will draw interest ahead of key stats on Friday.

Manufacturing and industrial production, trade, and GDP numbers are due out at the end of the week.

Expect the production and GDP numbers to be key.

The Pound ended the week down by 0.76% to $1.3236.

For the Loonie:

It’s relatively quiet week ahead on the economic calendar.

On the economic data front, trade data and December’s Ivy PMI are due out on Tuesday.

The main event of the week, however, will be the BoC monetary policy decision. Expect any hawkish chatter on the economic outlook to deliver a boost.

The Loonie ended the week down 0.41% to C$1.2843 against the U.S Dollar.

Out of Asia

For the Aussie Dollar:

It’s a quiet week ahead. Economic data is limited to house price numbers that will likely have a muted impact on the Aussie.

On Tuesday, the RBA monetary policy decision will be key, however.

Better than expected GDP numbers for the 3^rd quarter are unlikely to cause a shift in the RBA’s policy outlook. COVID-19 uncertainty could lead to a more cautious stance.

The Aussie Dollar ended the week down by 1.71% to $0.7001.

For the Kiwi Dollar:

It’s a quiet week ahead.

Business PMI and electronic card retail sales, due out on Friday, will be the key stats of the week.

Expect the electronic card retail sales figures to have a greater impact on the Kiwi.

The Kiwi Dollar ended the week down by 0.73% to $0.6772.

For the Japanese Yen:

Household spending will be in focus early in the week ahead of 3^rd quarter GDP numbers mid-week.

Expect the household spending figures to garner greater interest.

On Thursday, BSI survey-based data for the 4^th quarter will also be in focus.

The Japanese Yen rose by 0.51% to ¥112.800 against the U.S Dollar.

Out of China

It’s a busy week ahead on the economic calendar.

Trade data will be in focus early in the week ahead of inflation figures on Thursday.

While trade data will need to impress, a further pickup in inflationary pressure could test support for riskier assets. The markets will be looking for wholesale inflationary pressures to begin to soften at a minimum.

The Chinese Yuan ended the week up by 0.26% to CNY6.764 against the U.S Dollar.

Geo-Politics

Nothing new to consider in the week ahead, with China and Capitol Hill continuing to be the key areas of focus.

COVID-19

News updates on the Omicron strain and any further lockdown measures will be key. The markets will also be looking towards vaccine producers on the efficacy of the existing vaccines against Omicron.