Central Banks Take Center Stage as Markets Await Clues on Policy

Financial markets will be closely watched this week as several key events unfold.

The week begins slowly, but speakers from the European Central Bank and the Bank of Canada will provide insight into their monetary policies. ECB President Lagarde's speech on Monday is not expected to cause significant market volatility, but BoC Governor Macklem's comments may indicate whether rising energy prices could lead to a rate hike this year.

Other notable events include the release of ADP employment change and Richmond manufacturing index in the US on Tuesday, as well as flash PMIs for major economies on Wednesday. The Swiss National Bank is expected to maintain its policy rate at 0%.

In Australia, employment growth is forecast to slow down in the second half of the year, with a consensus of 20.9K jobs added in August compared to 15.8K last month. Meanwhile, Canada's retail sales are expected to decline by 0.5% and 0.8% month-over-month.

The US will also release durable goods orders, new home sales, and unemployment claims this week, which could provide insight into the country's economic health. Overall, market participants will be looking for clues about future monetary policy decisions and their impact on global economies.