An exciting beginning of the 2024 trading year is ahead. Next week, economic reports include the US and Canada Job Reports and inflation figures from the Eurozone. The FOMC will release the minutes of its latest meeting.
Get ready for an exciting start to 2024! Key economic reports are on the horizon that will have a significant impact on monetary policy expectations from the Federal Reserve (Fed) and the European Central Bank (ECB). The action will kick off on Tuesday as market functions return to normal after the holidays.
We’re all eyes on the labor market with next week’s reports including the JOLTS Job Openings on Wednesday, ADP Employment Report, Jobless Claims on Thursday, and Nonfarm Payrolls on Friday. Additionally, the ISM Manufacturing and ISM Services reports are scheduled for release on Wednesday and Friday, respectively. Also, keep your eyes peeled for the release of the FOMC minutes of the December meeting on Wednesday – market participants will be closely scrutinizing these.
According to analysts at TD Securities, a rapidly improving inflation outlook and the specter of rising real rates have led the Fed to start considering the case for policy easing in 2024. However, the Fed officials have since pushed back on the idea of imminent easing. The expectation is that the minutes will unveil that the FOMC is not entertaining the case for rate cuts just yet.
After Santa’s rally, a new challenge emerges on Wall Street. Stocks finished the year 2023 with solid gains, reaching record highs. The question is whether this momentum can hold next week or if it is time for a correction.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.36% | -0.30% | -0.46% | -0.54% | -1.13% | -0.72% | -1.96% | |
| EUR | 0.46% | 0.09% | 0.02% | -0.11% | -0.74% | -0.26% | -1.49% | |
| GBP | 0.43% | -0.14% | 0.11% | -0.22% | -0.86% | -0.24% | -1.79% | |
| CAD | 0.46% | -0.22% | 0.10% | -0.34% | -0.67% | -0.09% | -1.64% | |
| AUD | 0.54% | 0.13% | 0.19% | 0.08% | -0.65% | -0.16% | -1.63% | |
| JPY | 1.12% | 0.80% | 0.65% | 0.95% | 0.62% | 0.62% | -0.96% | |
| NZD | 0.71% | 0.30% | 0.43% | 0.25% | 0.14% | -0.49% | -1.17% | |
| CHF | 2.11% | 1.46% | 1.47% | 1.62% | 1.63% | 0.96% | 1.25% |
The heat map shows the percentage changes of major currencies against hold next week. The base currency is picked from the downward-pointing arrow on the left side of the table, while the quote currency is picked from the upward-pointing arrow at the top of the table. The percentage change displayed in the box will represent the base currency and the quote currency.
The US Dollar Index (DXY) posted its third consecutive weekly loss as market participants continued to anticipate Fed rate cuts in the coming year. It managed to end far from the bottom,