Global markets enter the new week on a positive footing after a strong finish to last week, with softer-than-expected US employment data prompting investors to reassess the outlook for Federal Reserve policy. The weaker payrolls report has reinforced expectations that the Fed may have less need to tighten monetary policy further, providing a welcome boost to risk sentiment. The economic calendar is relatively light by recent standards, with the key events being the FOMC Meeting Minutes, the RBNZ interest rate decision and Canadian employment data.
Market Review
Global markets enter the new week on a positive footing after a strong finish to last week, with softer-than-expected US employment data prompting investors to reassess the outlook for Federal Reserve policy. The weaker payrolls report has reinforced expectations that the Fed may have less need to tighten monetary policy further, providing a welcome boost to risk sentiment and helping US equity markets post one of their strongest weekly performances in recent months.
The shift in expectations also triggered a broad reversal across several markets that had been testing extreme levels. Gold pushed higher from annual lows, while a number of major currency pairs pulled back from recent peaks, most notably USD/JPY after reaching its highest level in four decades. With geopolitical tensions in the Middle East showing signs of stabilising, market volatility has eased, although traders remain alert to the possibility that developments in the region could quickly reignite demand for traditional safe-haven assets.
Week Ahead
From an economic calendar perspective, the week ahead appears relatively light by recent standards. The key events will be the release of the latest FOMC Meeting Minutes, the Reserve Bank of New Zealand’s interest rate decision and Canadian employment data. Outside these releases, traders may welcome a rare period of calmer conditions following several weeks of elevated volatility.
Key Themes This Week
🔹 FOMC Meeting Minutes – USD
🔹 Reserve Bank of New Zealand Interest Rate Decision – NZD
🔹 Canadian Employment Data – CAD
Key Events This Week
| Date | Event | Market Focus |
|---|---|---|
| Monday | US ISM Services PMI | USD |
| Tuesday | BoE Governor Bailey Remarks | GBP |
| Tuesday | Canada Ivey PMI | CAD |
| Wednesday | RBNZ Interest Rate Decision | NZD |
| Wednesday | FOMC Meeting Minutes | USD |
| Thursday | ECB Monetary Policy Meeting Accounts | EUR |
| Thursday | US Weekly Initial Jobless Claims | USD |
| Friday | Canada Monthly Employment Report | CAD |
Be ready for volatility. Trade the week ahead with focus.