Weekly Market Outlook: November 25th

This week is packed with essential economic events to keep an eye on. On Tuesday, the U.S. will share updates on consumer sentiment and economic activity with the release of the CB consumer confidence index, new home sales, and the Richmond manufacturing index. Wednesday will bring attention to Australian inflation data and the Reserve Bank of New Zealand’s (RBNZ) monetary policy announcement. In the U.S., a lot of data will be released throughout the week, including preliminary GDP, unemployment claims, durable goods orders, the core PCE price index, and the FOMC meeting minutes. Thursday is a bank holiday in the U.S. for Thanksgiving, so we can expect lighter market activity. Wrapping up the week on Friday, Japan will report the Tokyo Core CPI, and the eurozone will release its inflation data, giving us a sense of inflation trends in these regions.

At the upcoming RBNZ meeting, a 50 bps cut in the policy rate to 4.25% is expected. Recent inflation data in New Zealand shows progress towards the Bank’s target, while economic growth has softened. This data suggests the Bank will likely maintain its aggressive stance on monetary easing, with further rate reductions expected next year. In the U.S., expectations for personal income and spending, as well as the core PCE price index, point to continued resilience in consumer spending.

Market participants will also be watching durable goods orders in the U.S., which are expected to show a rebound from previous declines, albeit with lingering uncertainties. In other regions, like Japan and the eurozone, inflation data will be closely monitored for its impact on monetary policy decisions. As we head into the final weeks of the year, these economic events will provide valuable insights into the global economic landscape. Have a profitable trading week!