The Week Ahead: 22nd – 26th March 2021

Overview for the Week Ahead

On the economic calendar, 56 stats come into focus.

This week for the US, core durable goods orders will influence, prelim March Services PMI figures will be the key drivers on Wednesday and then finalized 4th quarter GDP and initial jobless claim figures on Thursday.

Expect the jobless claims to have the greatest impact. Powell and team have already talked up the economic recovery for 2021.

At the end of the week, inflation and personal spending figures for February wrap things up.

On the monetary policy front, FED Chair Powell is in action through the first half of the week.

A scheduled speech on Monday precedes two days of testimony on Tuesday and Wednesday. Expect any deviation from last week’s script to influence.

The Dollar Spot Index ended the week up by 0.26% to 91.919.

For Europe, PMI figures will be in focus on Wednesday.

From the ECB, the Economic Bulletin on Thursday will also draw plenty of attention. The markets will be looking for any shift in the ECB’s outlook on the economic recovery.

On the monetary policy front, ECB President Lagarde is also scheduled to speak on Thursday. With climate change the topic, however, any talk on monetary policy is unlikely.

Keep an eye on the EUR crosses!

The EUR ended the week down by 0.41% to $1.1904.

On the monetary policy front for the UK, BoE Governor Bailey speaks in the week. Following last week’s unanimous vote to hold policy unchanged, any hawkish chatter should support the Pound.

The Pound ended the week down by 0.37% to $1.3872.

For Canada, it is a quiet week ahead with no high impact events.

The Loonie ended the week down by 0.20% to C$1.2500 against the US Dollar.

For Australia, it’s a quiet week.

The Aussie Dollar ended the week down by 0.28% to $0.7742.

For New Zealand, it is another quiet week ahead.

The Kiwi Dollar ended the week up by 0.15% to $0.7165.

For China, it is a quiet week ahead with no material stats due out of China to provide the broader markets with direction.

The Chinese Yuan ended the week down by 0.01% to CNY6.5090 against the U.S Dollar.

For Japan, expect the manufacturing numbers to draw the greatest interest this week.

The Japanese Yen ended the week up by 0.14% to ¥108.88 against the U.S Dollar.

This Week’s High Impact Events

The times below are GMT+2.

Monday 22^nd March

15.00 – US – Fed Chair Powell Speaks

Potential instruments to Trade: USD Crosses.

Tuesday 23^rd March

13.50 – UK – BOE Gov. Bailey Speaks

Potential instruments to Trade: GBP Crosses.

16.00 – US – Fed Chair Powell Testifies

Potential instruments to Trade: USD Crosses.

Wednesday 24^th March

09.00 – UK – CPI y/y

Potential instruments to Trade: GBP Crosses.

10.15 – 11.30 – Europe – French, German & UK Flash Manufacturing & Services PMI

Potential instruments to Trade: EUR & GBP Crosses.

15.45 – US – Flash Manufacturing & Services PMI

Potential instruments to Trade: USD Crosses. 

16.00 – US – Fed Chair Powell Testifies

Potential instruments to Trade: USD Crosses. 

16.30 – US – Crude Oil Inventories

Potential instruments to Trade: USD Crosses. 

17.40 – Europe – ECB President Lagarde Speaks

Potential instruments to Trade: EUR Crosses. 

Thursday 25^th March

Tentative – Japan – BOJ Gov. Kuroda Speaks

Potential instruments to Trade: JPY Crosses. 

10.30 – Switzerland – SNB Monetary Policy Assessment & Policy Rate

Potential instruments to Trade: CHF Crosses. 

11.30 – Canada – BOC Gov. Macklem Speaks

Potential instruments to Trade: CAD Crosses. 

11.30 – Europe – ECB President Lagarde Speaks

Potential instruments to Trade: EUR Crosses. 

11.30 – UK – BOE Gov. Bailey Speaks

Potential instruments to Trade: GBP Crosses. 

14.30 – US – Final GDP q/q

Potential instruments to Trade: USD Crosses. 

Friday 26^th March

09.00 – UK – Retail Sales m/m

Potential instruments to Trade: GBP Crosses. 

11.00 – Europe – German IFO Business Climate

Potential instruments to Trade: EUR Crosses. 

All-Day – Europe – Euro Summit

Potential instruments to Trade: EUR Crosses. 

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