Markets Kick Off a Central Bank Super Week

Hello traders,

We step into a brand-new week of trading and this one is shaping up to be anything but quiet. Mondays are usually light on the calendar, but today already feels different. Out of Asia, we got disappointing numbers from China, with both industrial production and retail sales coming in below expectations, adding to the growing worries about the health of the world’s second-largest economy. And the day isn’t done yet — later we will hear from the Empire State Manufacturing Index in the US, expected at 4.3, and a speech from Christine Lagarde that could easily move the euro.

This sets the tone for what promises to be an extremely busy week. If there’s one theme for the coming days, it’s central banks. The calendar will be dominated by interest rate decisions — the Fed being the clear highlight, but also important moves expected from the Bank of Canada, the Bank of England, and the Bank of Japan. All eyes will be on Jerome Powell and whether the Fed aligns with market expectations and political pressure for another cut. This lineup means volatility is almost guaranteed.

The market’s opening moves reflect a cautious optimism. Futures are climbing, continuing the rebound that began on Friday, and indices are trying to extend that sentiment into the new week. Cryptocurrencies are also starting the week with energy, with Bitcoin climbing sharply after escaping last week’s sideways consolidation, which many traders saw as the buildup to a bigger move.

On the currency front, the Australian dollar is stealing the spotlight as the strongest performer so far, riding a wave of demand while other major currencies remain relatively muted ahead of the bigger events later in the week. Commodities are painting a mixed picture. Oil, after an exceptionally volatile end to the previous week, is pushing higher again, suggesting buyers still want to keep control despite Thursday’s and Friday’s rollercoaster. Metals, by contrast, are quiet and trading near flat levels, showing no clear direction yet as European markets get ready to open.

So here we are — a Monday that feels more like a Wednesday. Markets are already moving, the calendar is heating up, and the rest of the week promises even more fireworks. Traders should keep their eyes wide open: this is only the beginning of what could turn into one of the most eventful stretches we’ve seen in weeks.

Source: https://www.axiory.com/analytics/market-news/markets-kick-off-a-central-bank-super-week