Week ahead as US inflation report dominates economic calendar
US inflation report’s release this week is expected to have a significant impact on the direction that interest rates will go going forward. The annual inflation rate should fall to 6%, while the monthly rate is likely to hit 0.4%. Moreover, a 0.4% increase over the prior month in core consumer prices is projected, bringing the annual rate to 5.5%. The preliminary reading for the consumer sentiment, industrial production, and housing data from the University of Michigan are additional noteworthy data releases. Also, the financial results of companies like FedEx, Dollar General, Pinduoduo, and Adobe Systems will provide us with additional details regarding the state of the economy.
In order to tackle excessive inflation, the European Central Bank (ECB) is predicted to increase interest rates by an additional 50 basis points. For hints on the extent of the upcoming rate increase, traders will keenly watch President Christine Lagarde‘s press conference. On March 15, all eyes will be on the United Kingdom when Chancellor Jeremy Hunt presents the spring budget. China will provide important data on the labor market, fixed investments, retail sales, industrial production, and retail sales for both January and February in Asia. While retail inflation in India is expected to continue above the RBI’s upper target range of 6% for a second consecutive month, investors in Japan await minutes from the bank’s monetary policy decision and February trade data. The Bank of Indonesia will choose its important 7-day reverse repo rate, and South Korea will reveal its unemployment rate for February. Important reports for Australia include the NAB business confidence survey for February and the March Westpac consumer confidence report. The growth of New Zealand’s fourth-quarter GDP will be made public.
The week’s major economic event is expected to be the US inflation statistics, but there are a lot of other releases and events to keep an eye on as well. Also, central bank decisions, business reports, and economic data from Europe and Asia will all be closely watched by investors. With so much data and news expected, it’s important to stay current with current affairs in order to make sensible financial decisions.
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