Weekly Market Preview
Friday, 31st of January 2025
Markets are anticipating a series of key events and data releases this week that could impact price movements, including European inflation data, the Bank of England’s interest rate decision, and the U.S. jobs report.
At the start of the week, traders will be watching the preliminary European inflation data for January. The YoY CPI is expected to hold steady at 2.4%, while the YoY core CPI may ease slightly from 2.7% in December to 2.6% in January. A further decline in core inflation increases the likelihood that the European Central Bank (ECB) will maintain its current pace of rate cuts in upcoming meetings. In its previous session, the ECB lowered interest rates by 25 basis points but emphasized that rates remain in a restrictive zone, hinting at a potential shift toward a more neutral level, possibly around 2%.
Markets are also closely monitoring the Bank of England (BoE) meeting, where a 25-basis-point rate cut is widely expected. However, the voting breakdown among Monetary Policy Committee members will be crucial in assessing the likelihood of further cuts in the next meeting. Investors will also be looking for guidance from the BoE Governor’s speech, which could offer insights into the central bank’s future monetary policy direction.
Later in the week, the focus will shift to the U.S. jobs report for January. Projections suggest that job creation may slow from 256,000 in December to 150,000 in January, while unemployment is expected to remain unchanged at 4.1%. Since the Federal Reserve bases its policy decisions on inflation and employment trends, any rise in unemployment could increase pressure on the Fed to cut interest rates.
Monday, 3rd of February
Tuesday, 4th of February
Wednesday, 5th of February
Thursday, 6th of February
Friday, 7th of February