News Room



  • Monday: PBoC
    LPR, New Zealand Services PMI.
  • Tuesday: BoJ
    Policy Decision, New Zealand CPI.
  • Wednesday: Australia/Japan/Eurozone/UK/US
    Flash PMIs, BoC Policy Decision.
  • Thursday: ECB
    Policy Decision, US Durable Goods Orders, US Jobless Claims, US Q4 Advance
  • Friday: Tokyo
    CPI, US PCE.


The PBoC is expected to keep the LPR rates
unchanged at 3.45% for the 1-year and 4.20% for the 5-year following the MLF
last week. Deflationary forces
remain present, and the Chinese stock market is on a free fall with the general
sentiment being utterly dismal
. It will likely require a strong catalyst to
turn things around and aggressive rate cuts might do it, so it’s worth to
keep an eye for eventual surprises



The BoJ is expected to keep rates
unchanged at -0.10% with the 10-year JGB yield target at 0% with 1% as a
reference cap. The latest Japanese
eased further across all measures and the
Cash Earnings
were a big
disappointment. The BoJ will likely reiterate once again that they are
focused on wage growth and the spring wage negotiations
and that they will
not hesitate to take additional easing measures if needed.


The New Zealand CPI Y/Y is expected at
4.7% vs. 5.6% prior,
while the Q/Q measure is seen at 0.6% vs. 1.8% prior. The data will have no
bearing on the February rate decision but will certainly influence the
market’s pricing with the first rate cut seen in May

New Zealand CPI YoY


Wednesday will be the Flash PMIs day with
a particular focus on the Eurozone, UK and US data:

  • Eurozone Manufacturing
    PMI 44.8 vs. 44.4 prior.
  • Eurozone Services PMI
    49.0 vs. 48.8 prior.
  • UK Manufacturing PMI 46.7
    vs. 46.2 prior.
  • UK Services PMI 53.5 vs.
    53.4 prior.
  • US Manufacturing PMI 48.0
    vs. 47.9 prior.
  • US Services PMI 51.0 vs.
    51.4 prior.


The BoC is expected to keep rates
unchanged at 5.00%. The data out of Canada supports the central bank’s patient
approach as the underlying
measures surprised to
the upside for the second consecutive month and the latest
figure spiked to the
highest level since 2021
. The Bank of Canada has
been highlighting that it places a lot of focus on those two measures and
although it expects rate cuts to come this year, the timing is much more
uncertain and data dependent.



The ECB is expected to keep interest rates
unchanged at 4.00%. The central bank officials have been consistently pushing
back against the aggressive rate cuts expectations with consensus for the first rate cut leaning for
June compared to the market’s April forecast
. The latest data saw the Core
easing further although the M/M
measure showed a worrying 0.6% increase. The Unemployment
continues to hover around record
lows and wage growth remains elevated, which is something that the ECB doesn’t
see as favourable for a return to their 2% target.


The US Jobless Claims continue to be one
of the most important releases every week as it’s a timelier indicator on the
state of the labour market. Initial Claims keep on hovering around cycle
lows, while Continuing Claims after reaching a new cycle high started to trend
. This week the consensus sees Initial Claims at 200K vs. 187K prior,
while Continuing Claims are seen at 1840K vs. 1806K prior.

US Jobless Claims


The US PCE Y/Y is expected at 2.6% vs.
2.6% prior, while the M/M measure is seen at 0.2% vs. -0.1% prior. The Core PCE
Y/Y is expected at 3.0% vs.3.2% prior, while the M/M figure is seen at 0.2% vs.
0.1% prior which would make the 3-month and 6-month annualised rates fall to
1.5% and 1.9% respectively



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