This week, global financial markets will be closely watching for key economic data and policy decisions from major central banks. Here's a breakdown of what to expect:
United States: Focus on the FOMC Meeting
- FOMC Meeting: The Federal Reserve is expected to hold steady on interest rates. The main focus will be on the updated Summary of Economic Projections, particularly the dot plot, to gauge future rate expectations.
- Economic Data: February's real sector data, including retail sales, housing starts, and industrial output, should provide insights into the US economy's strength.
Europe: Monitoring Fiscal Developments and SNB Decision
- German Fiscal Policy: Keep an eye on developments regarding Germany's new fiscal initiatives.
- Swiss National Bank (SNB): The SNB is anticipated to cut its deposit rate further into negative territory, potentially reaching -0.25%.
- Economic Data: Monitor January trade and current account balances, as well as Germany's ZEW survey.
China: Stimulus Measures and Economic Data
- Stimulus Initiatives: China may announce new measures to stimulate domestic demand.
- Economic Data: Watch for real sector data to assess the impact of US tariffs and the overall economic performance.
Japan: BOJ Meeting and Key Data Releases
- Bank of Japan (BOJ) Meeting: The BOJ is expected to maintain its current policy. Governor Ueda may reiterate the possibility of future rate hikes if the economy performs as projected.
- Economic Data: Monitor February's trade balance and CPI data for insights into the Japanese economy.
United Kingdom: Labor Market and BOE Meeting
- Labor Market Report: The labor market report will be a key focus, particularly wage growth.
- Bank of England (BOE) Meeting: The BOE is widely expected to hold steady.
Canada: CPI and Economic Assessment
- Portfolio Flow Report: January portfolio flow report will give insights into foreign investment activity.
- CPI Data: February's CPI data will be closely watched for signs of inflation.
- Economic Slowdown: The economy appears to be slowing, with tariffs posing a significant headwind.
Australia: Employment Data and Central Bank Watch
- Employment Data: February's employment data will provide insights into the labor market.
- RBA Meeting: The Reserve Bank of Australia (RBA) meets on April 1st, with no change expected.
Mexico: Central Bank Expectations
- Banxico Rate Decision: The central bank is expected to cut rates further when it meets on March 27.
- Economic Data: Ahead of the central bank meeting, monitor the first half of March CPI, January IGAE, January retail sales, and February's trade figures.