The main theme in the markets at the moment is the balancing act by central banks between inflation and the economy, as they also seek to put an end to interest rate hikes. For the most part, the markets are convinced that the tightening cycle is coming to an end and that we may get rate cuts before the end of the year.
Therefore, in order to validate or invalidate this assumption, it is all about big data. As such, we are in a situation where the narrative is slowly evolving as we navigate each major economic release or risk event. Here are the people to watch out for this week:
- RBA May Monetary Policy Meeting Minutes (16/11) *
- China April Retail Sales, Industrial Production (11/16) **
- UK Labor Market Report April (16/11) *
- Canadian CPI Numbers For April (11/16) **
- US Retail Sales data for April (11/16) ***
- Australia Labor Market Report April (11/18) **
- Fed Chairman Powell speaks on monetary policy (11/19) ***
Looking at the agenda, the two most important in terms of impacting macro sentiment will be US retail sales tomorrow and Fed Chair Powell’s speech at the end of the week.