Next week all eyes will be on the Federal Reserve press-conference. The markets are waiting to hear the latest guidance about the future of the monetary FED policies from the FED chairman Powell. Even the slightest changes in the policies or hint about potential QE tapering may cost volatility in the markets. Although no changes are expected from the FED, the markets are waiting on the FED chairmen to comment on the $1.9T stimulus package, inflation, and the rising yields in the bond market, and the state of the economic recovery. The last thing the FED need is a market that is getting ahead of them, pricing higher inflation, QE tapering, and interest rates. Rising bond yields are a good thing, because it is a signal for economic recovery however, too fast-rising bond yields will put pressure on the highly leveraged economy. Therefore, at some point, the FED will have to find a way to guide and address the market’s concern and expectation about QE tapering and interest rates rise.
Last week the U.S. surpassed a major vaccination milestone, notching 100 million doses. Joe Biden has directed states to make all American adults eligible for coronavirus vaccines by the 1st of May 2021. On the contrary, Europe is hit by a 3rd COV19 wave after the setbacks with the Astra Zeneca vaccine, and Italy enters another lock done from Sunday 14th of March 2021.
On the economic front, the markets will watch the following economic data releases:
China Industrial Production y/y – Monday, 15 March 2021
China Retail Sales y/y – Monday, 15 March 2021
China Retail Sales y/y – Monday, 15 March 2021
China Unemployment Rate – Monday, 15 March 2021
Canada Manufacturing Sales m/m – Monday, 15 March 2021
USA Empire State Manufacturing Index – Monday, 15 March 2021
Australia Monetary Policy Meeting Minutes – Tuesday, 16 March 2021
EU ZEW Economic Sentiment – Tuesday, 16 March 2021
German ZEW Economic Sentiment – Tuesday, 16 March 2021
US Core Retail Sales m/m – Tuesday, 16 March 2021
US Retail Sales m/m – Tuesday, 16 March 2021
US Industrial Production m/m – Tuesday, 16 March 2021
US Business Inventories m/m – Tuesday, 16 March 2021
Australia RBA Assist Gov Kent Speaks – Wednesday, 17 March 2021
Canada CPI m/m – Wednesday, 17 March 2021
US Crude Oil Inventories – Wednesday, 17 March 2021
US FOMC Economic Projections – Wednesday, 17 March 2021
US FOMC Press Conference – Wednesday, 17 March 2021
New Zealand GDP q/q – Wednesday, 17 March 2021
Australia Employment Change – Thursday, 18 March 2021
Australia Unemployment Rate – Thursday, 18 March 2021
UK MPC Official Bank Rate Votes – Thursday, 18 March 2021
UK Monetary Policy Summary – Thursday, 18 March 2021
Canada ADP Non-Farm Employment Change – Thursday, 18 March 2021
US Philly Fed Manufacturing Index – Thursday, 18 March 2021
US Unemployment Claims – Thursday, 18 March 2021
UK GfK Consumer Confidence – Friday, 19 March 2021
Australia Retail Sales m/m – Friday, 19 March 2021
Japan Monetary Policy Statement – Friday, 19 March 2021
Japan BOJ Press Conference – Friday, 19 March 2021
German PPI m/m – Friday, 19 March 2021
Canada Core Retail Sales m/m – Friday, 19 March 2021
Canada Retail Sales m/m- Friday, 19 March 2021
