Quiet Week Ahead for Markets with Key Events to Watch
Financial markets may have fewer catalysts this week due to limited economic data and no major central bank announcements. However, there are still some key events that could influence market sentiment. The global purchasing manager indices (PMI) reports will provide an update on the health and direction of activity across manufacturing and services sectors in major economies.
The PMI surveys may show whether economic growth is gathering pace or slowing down, which could significantly affect the euro against the US dollar. A stronger US economy could also impact the EUR/USD pair, with a break below $1.1475 potentially sending the euro towards $1.1360.
On Thursday, Australia's labour market report will be released, which may influence expectations for interest rate hikes. Markets currently assign an 82% probability of a 25 basis point rate hike to 4.60%. A stronger employment data could strengthen the case for further rate rises, potentially pushing AUD/JPY towards ¥112.
Additionally, Costco's earnings on Thursday are expected to provide insight into the health of the US consumer. The company is forecasted to report revenue of $94.8 billion and earnings per share of $6.53, with analysts expecting similar growth in the first quarter of fiscal 2027.