A quick look at the most important events of this week

What are the markets waiting for this week?

Miscellaneous data we will follow up

Attention is focused this week on many economic stations that will have a prominent impact on market movements, led by the US Federal Reserve and the Central Bank of Canada meeting next Wednesday, where the events of the first meeting of the largest bank in the world dominate the course of events.

A quick look at the main events of the past week The events of the past week focused on inflation data in both Canada and Britain, in addition to the Bank of Japan meeting, which we started the week with, where the Bank kept its monetary policy unchanged.

The Bank of Japan keeps its monetary policy unchanged and raises its inflation expectations (fayezalajmi-4x.com) Inflation in the UK recorded its highest annual reading since 1992 Inflation in the UK exceeds expectations and raises expectations of a rate hike (fayezalajmi-4x.com),

while it rose in Canada but below expectations Annual inflation in Canada rises in December to 4.8% (fayezalajmi- 4x.com)

Australian labor market data shocked the markets and unemployment rates fell to their lowest reading since the global financial crisis The unemployment rate in Australia recorded the best reading since the global financial crisis (fayezalajmi-4x.com)

The general index of the US dollar was able to record weekly gains of about 0.50% at the close at 95.62 levels, and it is trading this Monday morning at 95.77 levels.

What are the markets waiting for this week?

US Federal

The most important events of the week lie in the first meeting of the US Federal Reserve, which will take place on Tuesday and Wednesday, and will be announced Wednesday in the American session.

The US Federal Reserve has stressed and emphasized in recent weeks the danger of inflation and that it must be fought, as it has been largely confirmed that it exceeds 94% that the Fed will raise interest rates at the March meeting as the first process to raise interest rates in the current year, and that they will be raised by three to four times during the year, usually in June September and December.

So the process of tightening monetary policy and starting to raise interest rates is something that has been emphasized, but the question is whether we will witness additional tightening, as Goldman Sachs mentioned that there is a possibility that the Fed will move in all the remaining meetings during the current year, which means seven moves, and if we exclude one meeting to announce the start of Budget cuts We will have six rate hikes, according to a report published by Goldman Sachs.

Attention will be watching Jerome Powell and the questions of the press conference and will often focus on these questions, which is to what extent the US Federal Reserve is ready to go to stop high inflation, as the markets have already priced in the current figures, raising them by three to four times, and accordingly, any expectations of an additional interest rate hike may support additional market movements.

Some expectations also indicate that the Federal Reserve may raise interest rates by half a point in March, which is unlikely until the moment, but if the Fed hints at it at Wednesday’s meeting, the markets will start calculating it.

Some expectations also indicate that the Fed may announce the end of the bond purchase program suddenly and early this week, and raise interest rates by a quarter point at Wednesday’s meeting, which will also surprise the markets.

Central Bank of Canada

The Bank of Canada will also announce its monetary policy on Wednesday, a few hours before the US Federal Reserve, where expectations indicate that the bank will keep its monetary policy unchanged at its first meeting this year and keep the current interest rates at 0.25%.

The Bank of Canada ended its bond-buying program at last October’s meeting and expressed its intention to begin tightening monetary policy, especially with inflation reaching its highest level in 30 years in December.

Some market expectations and opinion polls see that Canada may surprise the markets and raise interest rates in next Wednesday’s meeting, especially after the latest inflation reading issued last week.

We expect at www.fayezalajmi-4x.com that the Bank of Canada will postpone raising interest rates until its meeting on the second of next March, and that the hikes will continue this year to more than three times.

Miscellaneous data that we will follow during the week

Today, Monday, we will be watching the Manufacturing and Services PMIs from the Eurozone, UK and USA.

Tomorrow, Wednesday, Australia will announce inflation figures in the Asian session, and Germany will announce the Ifo business climate index in Germany in the European session. We will monitor the US consumer confidence index in the American session.

Wednesday, attention will turn to the Bank of Canada meeting first and the US Federal Reserve meeting, which will be followed by a press conference by its Chairman Jerome Powell. At the end of the American session, inflation data from New Zealand will be announced.

Thursday, the United States of America will announce a set of records such as durable goods orders, the estimated growth in the last quarter of last year, weekly unemployment benefits and home sales.

Friday, the last session of the week, attention will turn to the preferred inflation reading of the US Federal Reserve PCE, in addition to the personal expenditure and consumption index from the United States of America.

To get the weekly economic calendar The economic calendar – Fayez Al-Ajmi – Fayez Alajmi (fayezalajmi-4x.com)