Weekly Market Preview
Friday, 7th of March 2025
Markets are closely watching key economic data and central bank updates that could drive price movements. This week, Japan will release its final GDP data for the fourth quarter of last year. Investors will analyse this report, along with upcoming GDP releases, to assess the impact of monetary policy changes and interest rate hikes on economic growth. A slowdown could prompt the Bank of Japan to be more cautious in raising rates, though it is expected to increase rates to at least 1% this year.
Traders are also awaiting the US Consumer Price Index (CPI) report for February. Inflation rose from 2.9% in December to 3% in January, while core inflation increased from 3.2% to 3.3% year-over-year. This suggests that current interest rates are insufficient to bring inflation down to the Federal Reserve’s 2% target, leading policymakers to maintain their stance at the last meeting. If inflation continues to rise at this pace, it will likely delay the Fed’s ability to cut rates this year.
Meanwhile, markets anticipate the Bank of Canada’s interest rate decision, with expectations that rates will remain unchanged in March but could see a 25-basis-point cut in April. One major concern for Canadian policymakers is the potential impact of tariffs the Trump administration plans to impose on Canadian goods. According to the central bank’s estimates, these tariffs could reduce Canada’s GDP by 2% to 4% over two years, raising the risk of a technical recession. Investors will seek further clarity on whether the Bank of Canada might lower interest rates below 2% or even 1% to support economic growth if a downturn materializes.
Monday, 10th of March
Tuesday, 11th of March
Wednesday, 12th of March
Thursday, 13th of March
Friday, 14th of March