O, Canada! China?! Yellen Yellin’: Full Week Ahead Preview

Ok, well this should be an interesting week.

We’ll get the BoC, which will make Bloomberg’s Luke Kawa happy because it means Canada will be in the spotlight for once. He’s got some fun Canada-themed socks we imagine he might wear on Wednesday.

canada

“The recent avalanche of hawkish messages from the BoC, as well as from central bankers of advanced economies around the world, indicate that a hike is highly likely,” BofAML wrote this evening.

We’ll also get Yellen yellin’ on Capitol Hill, which always makes for riveting television. And then there’s CPI, which will obviously be scrutinized to death (especially in light of the lackluster AHE print we got on Friday) given that the one thing missing from DM central banks’ hawkish lean is an inflation justification.

You’ll also want to to watch crude for any sign that confidence is deteriorating further.

And don’t forget about China.

China?!

Yes, China.

Here’s what’s coming up in terms of data from the country that’s responsible for the entirety of global private sector credit creation:

China

“Bigly.” Or “big league.” You get it.

Here’s a quick bullet point summary from BofAML:

In the US, in addition to Chair Yellen’s testimony we get inflation (CPI and PPI), retail sales, industrial production and Michigan sentiment, as well as several Fed speakers.

In the Eurozone, a quiet calendar with only industrial production and several ECB members participating in a Eurogroup meeting in Brussels.

In the UK, focus will be on the labor market report. The government will also present the Brexit repeal bill on Monday.

In Japan, machine orders, trade balance, money supply, PPI and the final print of industrial production are on the schedule. BoJ Governor Kuroda also speaks at a quarterly branch managers meeting.

In Canada, attention will be centered on the Bank of Canada rates decision.

It is inflation week in the Scandies, with inflation releases in both Norway and Sweden as well as the inflation expectations survey in Sweden. Inflation will be watched after both central banks removed their easing bias at their latest meetings.