Heading into a new week, there is important economic releases to keep an eye out for. Monday is fairly ‘soft’ when it comes to data releases, so looking ahead what’s expected and when? Later on this afternoon we’re hearing from the Federal Reserve member Bostic, after last weeks market movement from FOMC and non-farm payroll. We have seen market movements after press conferences if its suggesting that the Central Bank’s direction/action is changing.
We could see last week that the US showed a healthy labour market – actually putting pressure on the USD. With inflation coming down naturally and the job market creating more jobs than expected, USD dropped off against its currency pairs – indicating that the Federal Reserve will commence its rates cut sooner rather than later. Markets currently pricing in it will happen in Q1 of 2024. With that in mind, on Thursday the US release both core inflation and inflation levels for December. Expectations is that core inflations will continue to come down naturally – which could cement the path Federal Reserve will have to take.