Joaquín Robles, XTB analyst, highlighted December CPI reading in the United States as “the most important data of the week” in order to determine the direction of the markets in the next seven days. Robles has assured that the markets will follow “the expectation of inflation data”in addition to the evolution of other economic perspectives.
The analyst explains that the forecast that the inflation indicator in the US can be below 3% “for the first time since mid-2021” points to the possibility that the Federal Reserve will be forced to start rate cut of interest ahead of schedule.
Beyond US inflation, throughout this week investors will pay attention to other data, such as unemployment level in the eurozone and any clue regarding the future decisions of the main central banks on monetary policy, to guide the markets, while they remain pending “the big event in January, which will be central bank meetingsat the end of the month”.
Data that will be known this week
As for the weekly agenda, tomorrow, Monday, consumer confidence will be known and unemployment figures in the euro area. Germany’s industrial production for November will be published on Tuesday and the Japan CPI. Several indicators of the US mortgage market and loans in China are expected for Wednesday.
On Thursday it will be known the US CPI data and new unemployment claims; while in Europe the industrial production of Spain will be published. Finally, on Friday it will be published the CPI of China and Spainas well as UK industrial production.
2024-01-07 15:03:53
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