HomeContributorsFundamental AnalysisWeek Ahead – Inflation Issues Sinking In

Week Ahead – Inflation Issues Sinking In


Disinflation trends are struggling and now Wall Street will look to see if improving manufacturing and service activity will further fuel pricing pressures. On Monday, durable goods data for January is expected to show higher borrowing costs are hurting manufacturers. Wall Street will also get a couple of Fed regional surveys from Dallas and Richmond.  Traders will pay close attention to Wednesday’s ISM manufacturing report and Friday’s Services Index.

Central bank speak will be closely monitored, especially new Fed member Goolsbee’s comments on Tuesday.  Jefferson will speak on inflation and the dual mandate on Monday, while Waller will talk about the outlook on Thursday. On Friday, we will hear from Logan, Bostic, and Bowman.

US President Biden will also host German Chancellor Scholz at the White House. Traders will look to see if they announce any new efforts to support Ukraine or sanctions against Russia.

Earnings season continues with key updates from Bayer, Berkshire Hathaway, Broadcom, Budweiser Brewing Co. Apac, Costco Wholesale, CRH, Dell Technologies, Dollar Tree, HP, Kroger, Kuehne + Nagel International, Lowe’s, Merck, National Bank of Canada, Occidental Petroleum, Salesforce, Toronto-Dominion Bank,  VMware, and Workday.


Next week offers a number of economic data points, the most notable of which will be the flash HICP readings. While headline inflation has been falling, core remains at the peak and policymakers are unlikely to ease off the brake until they’re seeing progress on this front. Forecasts suggest it’s still a little early for that. Markets are still pricing in a 50 basis point hike at the meeting in March although there’s an almost equal chance of 75, based on current rates.

Which brings us nicely to the central bank speak, kicking off with President Lagarde who’s due to appear at the G20 conference over the weekend.


It’s all a bit calm next week, with central bank appearances the most notable thing on the calendar. That includes Governor Bailey on Wednesday and Chief Economist Pill on Thursday. With 25 basis points almost entirely priced in for March and the committee clearly a little divided on the correct path going forward, I’m not sure what they could say that would cause much of a shock at this point.


Unemployment is expected to have jumped to 4% in January, from 3.7% the month before. Meanwhile PMIs on manufacturing and services on Wednesday and Friday, respectively, will be eyed.

South Africa

A quiet week in store with unemployment the only notable release.


The CBRT cut rates last week by an unusually modest 50 basis points, taking the repo rate to 8.5%. Inflation remains extraordinarily high, with the official rate released by the Turkish Statistical Institute, sitting at 57.68%. The February reading will be released on Friday, while GDP data is due on Tuesday.


A selection of data points will be eyed this upcoming week which should give an up-to-date view on the state of the economy. The week will start with GDP data on Tuesday for the fourth quarter, alongside the KOF indicator for February. This will be followed by retail sales for January and the manufacturing PMI for February on Wednesday.


The official manufacturing and non-manufacturing PMIs for January will be released on Wednesday, in what will otherwise be a relatively quiet week. Of course, all eyes are on the transition and how quickly and strongly the economy will bounce back, with stimulus measures over the next couple of months likely to turbo-charge the recovery.


GDP and PMI data eyed next week, with the economy seen performing strongly again in the third quarter and surveys indicating ongoing optimism.

Australia & New Zealand

The RBNZ’s first interest rate meeting of the year last week was in line with market expectations of another 50 basis point hike. The central bank minutes mentioned that a potential recession in the second quarter of this year might occur, putting pressure on the New Zealand dollar.

Focus this week will be on Australian retail sales data for January and GDP for the fourth quarter, and New Zealand retail sales for the fourth quarter.


According to Japanese lawmakers, BOJ Governor nominee Kazuo Ueda is to speak in the upper house on 27 February, and deputy governor nominees are to appear in the upper house on 28 February. Ueda will attend the hearing at the National Diet and give a speech, which may have an impact on Japanese markets.

Retail Sales and the Tokyo core CPI will be in focus next week.


Retail sales and the February PMI survey are the only releases of note.

Economic Calendar

Saturday, Feb. 25

Economic Events

  • Berkshire Hathaway reports earnings
  • G-20 finance ministers and central bank governors conclude meetings

Sunday, Feb. 26

Economic Events

  • German Chancellor Scholz meets with Indian PM Modi
  • Japan’s ruling LDP holds its annual convention

Monday, Feb. 27

Economic Data/Events

  • US durable goods
  • Eurozone economic confidence, consumer confidence
  • Hong Kong trade
  • Israel unemployment
  • Japan BOJ outright bond purchases
  • Mexico trade
  • US Congress returns after a recess
  • US Treasury Secretary Yellen talks with President Zelenskiy
  • ECB chief economist Lane speaks on “Macro-Financial Stability in the EU”
  • ECB’s de Cos speaks at EIB event in Luxembourg
  • BOE’s Broadbent speaks at a digital technologies conference in London

Tuesday, Feb. 28

Economic Data/Events

  • US wholesale inventories, Conference Board consumer confidence
  • Australia current account, retail sales
  • Canada GDP
  • Finland GDP
  • France CPI, GDP
  • India GDP
  • Japan industrial production, retail sales
  • Mexico international reserves
  • Singapore unemployment
  • South Africa unemployment, trade balance
  • Sweden GDP
  • Switzerland GDP
  • Thailand trade
  • Turkey GDP
  • Chevron investor day
  • Mayoral election in Chicago
  • New Fed member Goolsbee speaks at Ivy Tech Community College
  • BOE chief economist Huw Pill makes closing remarks at digital technologies conference
  • BOE’s Mann and ECB’s Vujcic speak at the EIB forum in Luxembourg
  • Earnings from Target

Wednesday, March 1

Economic Data/Events

  • US construction spending, ISM Manufacturing, light vehicle sales
  • Australia GDP
  • China manufacturing PMI, non-manufacturing PMI, Caixin manufacturing PMI
  • European Manufacturing PMIs: Eurozone, Germany, France, and the UK
  • Germany CPI, unemployment
  • India Manufacturing PMI
  • New Zealand building permits
  • Russia unemployment
  • Start of the annual Conservative Political Action Conference (CPAC)
  • Bundesbank publishes annual report
  • BOJ’s Nakagawa speaks in Fukushima
  • BOE Governor Bailey speaks at a conference focused on the cost of living crisis
  • ECB’s Villeroy speaks at the French National Assembly’s finance committee
  • ECB’s Visco speaks in Frankfurt
  • Earnings reports from Dollar Tree, Kohl’s, Salesforce, and Lowe’s

Thursday, March 2

Economic Data/Events

  • Australia building approvals
  • Brazil GDP
  • Eurozone CPI, unemployment
  • Hong Kong retail sales
  • Hungary GDP
  • Italy CPI, unemployment
  • Japan capital spending
  • Mexico unemployment
  • South Korea industrial production
  • Spain unemployment
  • Sri Lanka rate decision
  • US initial jobless claims
  • Bloomberg Intelligence’s Market Structure event in New York. Speakers include Securities and Exchange Commission Chair Gary Gensler and NYSE COO Michael Blaugrund
  • The due date for the DOJ’s amicus brief with its view on Donald Trump’s claim that he should get absolute immunity against civil lawsuits seeking to hold him liable for the Jan. 6, 2021 attack on the US Capitol
  • ECB publishes accounts of February policy meeting
  • Bank of Japan board member Hajime Takata gives speech in Kanagawa
  • BOE chief economist Huw Pill speaks on the economic outlook
  • Retail earnings continue with Macy’s, Costco, and Nordstrom all reporting

Friday, March 3

Economic Data/Events

  • US President Biden and German Chancellor Scholz meet at the White House
  • China Caixin services PMI
  • Czech Republic GDP
  • Eurozone Services PMI, PPI
  • France industrial production
  • Italy GDP
  • Japan unemployment, Tokyo CPI
  • Singapore retail sales
  • ECB’s Vasle and Muller speak on inflation
  • Italian PM Meloni visits Abu Dhabi
  • BOE’s Hauser speaks at a workshop on market dysfunction hosted by the Initiative on Global Markets in Chicago

Sovereign Rating Updates

  • Austria (Fitch)
  • Czech Republic (Fitch)
  • Hungary (Moody’s)
  • European Union (DBRS)
MarketPulse is a forex, commodities, and global indices research, analysis, and news site providing timely and accurate information on major economic trends, technical analysis, and worldwide events that impact different asset classes and investors. This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.

Featured Analysis

Learn Forex Trading