Following the BoE and the ECB decisions last week, the G10 central bank torch is now passed to the BoJ, the Norges Bank and the SNB. Only the Norges Bank is expected to act and hike rates, while the other two are anticipated to stand pat. In terms of data, we get inflation figures from the UK, Canada and Japan, as well as New Zealand’s GDP for Q2.
On Monday and Tuesday, the calendar appears relatively light. On Monday, the only noteworthy releases we get are Eurozone’s final CPIs for August and the US Empire State manufacturing index for September. As usual, Eurozone’s final inflation prints are expected to confirm their preliminary estimates, while the Empire State index is expected to have declined slightly. On Tuesday, we get the minutes from the latest RBA meeting, where once again no fireworks are expected, and Canada’s manufacturing sales for July.
On Wednesday, the Bank of Japan concludes its two-day policy meeting. When they last met, back in July, Japanese policymakers kept their short-term policy rate unchanged at -0.1% and repeated that they will ...
Since then, Japan’s 10-year yields failed to move well above the 0.1% mark, and thus investors may be on the lookout for any clues whether the Bank could act again soon to boost trading. That said, with many officials attributing this to the summer-holiday season, we don’t expect any remarks on that front. We think that officials may prefer to...
Read the full financial markets weekly outlook on JFD Research.