Here are some of the important economic data that will be the focus of the market throughout this week.
Canada's GDP data (Tuesday 9.30pm): Canada's economic growth data will be scrutinized which will give insight into the setting of the central bank's monetary policy. Monthly growth for last year's November reading is forecast to increase slightly.
New Zealand Jobs Data (Wednesday 5.45am): Job growth in New Zealand for the final quarter of 2022 is projected to be lower, and could prompt the central bank to take the option of easing policy. The unemployment rate is expected to remain at 3.3%.
US ADP Employment Data (Wednesday 9.15 PM): Giving an early picture of the entire labor sector, expectations for private employment in the United States (US) could trigger a gloomy outlook for employment data to be published at the end of the week. The projected figure for January was weaker than the increase in the previous month.
US Manufacturing PMI data ISM Survey (Wednesday 11.00 PM): The contraction of this key sector based on the release of previous figures fueled fears of an economy heading towards a recession. The latest reading is still predicted to be low below the 50.0 point level.
FOMC Meeting (Thursday 3.00 AM): Being the main focus this week, investors are waiting for the answer to the decision to increase interest rates by the Federal Reserve (Fed). The majority predict the Fed will slow interest rate hikes to 25 basis points from 4.50% to 4.75%. The central bank's follow-up comments will be scrutinized and likely to drive the pace of market movements this week.
BOE Policy Meeting (Thursday 8.30pm): The Bank of England (BOE) is expected to raise interest rates by 50 basis points to 4.00%. A positive follow-up statement from the governor will support a surge for the Pound.
ECB Policy Meeting (Thursday 9.15 PM): Like the BOE, the European central bank (ECB) is also expected to raise interest rates by 50 basis points to reach 3.00%. This had been expected earlier by the market after the indications presented by President Christine Lagarde and other members of the central bank earlier.
US NFP Employment Data (Friday 9.30pm): Components of the NFP employment data will be scrutinized for markets to assess labor sector developments for the world's largest economy. The forecast is somewhat gloomy with job growth for January slightly lower than December, while the unemployment rate is forecast to rise again to 3.6%.
