Week’s main events (December 23 – December 27)

This week will not be busy because of the Christmas holidays. As a rule, bankers and investors go on vacation at this time, so the volatility during the Christmas and New Year periods is usually below average. But there are still events to watch out for. Investors’ attention will be directed to GDP data from the UK and Canada and the minutes of the last RBA and BoJ meetings. Also, it’s worth paying attention to the economic data from Japan on Friday.

Monday, December 23

On Monday, investors will focus on the GDP data from Canada and the UK. The final British GDP data is expected to show 0.1% q/q, which is weak. Therefore, any negative surprise will put additional pressure on the GBP. In Canada, GDP is expected to grow by 0.2% m/m. Better-than-forecast data will support the weak CAD. Traders should also pay attention to Singapore’s inflation data. It is expected to rise from 1.4% to 1.7% y/y, which may support the Singapore dollar.

Main events of the day:

– Singapore Inflation Rate (m/m) at 07:00 (GMT+2).
– UK GDP (q/q) at 09:00 (GMT+2);
– Canada GDP (m/m) at 15:30 (GMT+2);
– US CB Consumer Confidence (m/m) at 17:00 (GMT+2).

Tuesday, December 24

On Tuesday, most financial exchanges will have a short working day. Early close will be in Singapore, Hong Kong, Australia, New Zealand, the United Kingdom, and the United States. It’s a bank holiday in Germany, Norway, Switzerland, and Sweden. But there will be reports throughout the day that are worth looking at. Firstly, it concerns the latest RBA and BoJ meeting minutes, explaining why the central banks decided to keep rates at current levels at the last meeting. Also, in the US session, it is worth paying attention to the US Durable Goods Orders report, which is a leading indicator of production. The growth in orders for delivery signals that manufacturers will increase activity. The better the data, the better for the USD currency.

Main events of the day:

– Japan Monetary Policy Meeting Minutes (m/m) at 01:50 (GMT+2);
– Australia Monetary Policy Meeting Minutes (m/m) at 02:30 (GMT+2);
– US Durable Goods Orders (m/m) at 15:30 (GMT+2);
– US Richmond Manufacturing Index (m/m) at 17:00 (GMT+2);
– US New Home Sales (m/m) at 17:00 (GMT+2).

Wednesday, December 25

Christmas is a bank holiday in the United States, Canada, the United Kingdom, Australia, New Zealand, Hong Kong, Singapore, Switzerland, Norway, and most European countries. Only the Asian (China, Japan) markets will work. However, no important events are expected, so volatility will be very low. It is better not to trade on such a day.

Thursday, December 26

Most financial markets will also be closed on Thursday (Boxing Day). The US session is expected to see data on weekly jobless claims and a report on crude oil inventories. However, since most financial exchanges will be closed, the volatility will also be weak. Therefore, it is also recommended that you refrain from trading on this day.

– US Initial Jobless Claims (w/w) at 15:30 (GMT+2);
– US Crude Oil Inventories (w/w) at 18:00 (GMT+2).

Friday, December 27

The most essential Friday’s release for investors will be the inflation report in Japan’s capital. This report is a leading indicator of nationwide inflation. The indicator is expected to rise from 2.2% to 2.5% annually. A rise in inflation is necessary for the hawkish stance of the Bank of Japan (BoJ), aiming for a rate hike next month. Therefore, rising inflation will strengthen the Japanese currency.

Main events of the day:

– Japan Tokyo Core CPI (m/m) at 01:30 (GMT+2);
– Japan Unemployment Rate (m/m) at 01:30 (GMT+2);
– Japan Industrial Production (m/m) at 01:50 (GMT+2);
– US Natural Gas Storage (w/w) at 17:30 (GMT+2).

by JustMarkets, 2024.12.23

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