Highlights
This week, key central banks are widely expected to leave interest rates unchanged to continue its battle to bring inflation back down to target.
On Tuesday, the Reserve Bank of New Zealand is expected to hold its policy interest rate at 5.5 percent as inflationary pressers persist close to 5 percent. The Bank of Canada on Wednesday is also seen keeping its key rate at 5.0 percent for a sixth straight meeting amid mixed economic indicators but it may point to the need for a rate cut in coming months, possibly at its next meeting in June. Thursday will likely see the European Central Bank hold its policy rate at 4.5 percent with another hint of a June rate cut. The Bank of Korea is also expected to stand pat, leaving the policy rate at a restrictive level of 3.5 percent for a 10th straight meeting.
On the data front, the focus is on the US CPI data on Wednesday, which is expected to show the annual inflation rate accelerated to 3.5 percent in March, reflecting higher gasoline prices, and thus the Federal Reserve will be in no hurry to start lowering interest rates. The core CPI, which excludes food and energy, is seen easing slightly to 3.7 percent, although that would be still above the Fed's 2 percent target. The data follows last week's news that the prices paid index compiled by the Institute for Supply Management (ISM) for the manufacturing sector rose to a 20-month high in March while the ISM prices paid index for services slipped to a four-year low but still kept firms concerned about inflation.
On Monday, the unemployment in Switzerland is forecast to edge up to a seasonally adjusted 2.3 percent in March from 2.2 percent in February, when it was unchanged.
German industrial production in February is expected to rebound a further 0.3 percent on the month after rising a better-than-expected 1.0 percent in January. From a year earlier, however, output is seen down 7.1 percent following January's 5.4 percent contraction.
The goods balance in Germany is expected to narrow to a €26.0 billion surplus in February from a larger-than-expected surplus of €27.5 billion in a positive January report that saw strong gains for imports and even stronger gains for exports.
There are no major indicators in North America.
Minneapolis Federal Reserve Bank President Neel Kashkari will participate in a conversation with Missoula community members and University of Montana faculty and students at 7 p.m. EDT (2300 GMT).
On Tuesday, the Reserve Bank of New Zealand is expected to hold its policy interest rate at 5.5 percent as inflationary pressers persist close to 5 percent. The Bank of Canada on Wednesday is also seen keeping its key rate at 5.0 percent for a sixth straight meeting amid mixed economic indicators but it may point to the need for a rate cut in coming months, possibly at its next meeting in June. Thursday will likely see the European Central Bank hold its policy rate at 4.5 percent with another hint of a June rate cut. The Bank of Korea is also expected to stand pat, leaving the policy rate at a restrictive level of 3.5 percent for a 10th straight meeting.
On the data front, the focus is on the US CPI data on Wednesday, which is expected to show the annual inflation rate accelerated to 3.5 percent in March, reflecting higher gasoline prices, and thus the Federal Reserve will be in no hurry to start lowering interest rates. The core CPI, which excludes food and energy, is seen easing slightly to 3.7 percent, although that would be still above the Fed's 2 percent target. The data follows last week's news that the prices paid index compiled by the Institute for Supply Management (ISM) for the manufacturing sector rose to a 20-month high in March while the ISM prices paid index for services slipped to a four-year low but still kept firms concerned about inflation.
On Monday, the unemployment in Switzerland is forecast to edge up to a seasonally adjusted 2.3 percent in March from 2.2 percent in February, when it was unchanged.
German industrial production in February is expected to rebound a further 0.3 percent on the month after rising a better-than-expected 1.0 percent in January. From a year earlier, however, output is seen down 7.1 percent following January's 5.4 percent contraction.
The goods balance in Germany is expected to narrow to a €26.0 billion surplus in February from a larger-than-expected surplus of €27.5 billion in a positive January report that saw strong gains for imports and even stronger gains for exports.
There are no major indicators in North America.
Minneapolis Federal Reserve Bank President Neel Kashkari will participate in a conversation with Missoula community members and University of Montana faculty and students at 7 p.m. EDT (2300 GMT).
Definition
Market Focus details key factors in the coming day that will impact the economic outlook and the financial markets. These include central bank events, economic indicators, policymaker speeches as well as expected political and corporate developments.
Description
Keeping up-to-date with event schedules and the economic calendar is key to understanding the global financial system. Econoday's Market Focus allows investors and policymakers to carefully track what will be making news and moving the financial markets in the coming day.
