Investing.com – In the week ahead, market players will be turning their attention to fresh comments from Federal Reserve Chair Janet Yellen as expectations start to grow for a December rate hike.
Meanwhile, investors will be focusing on a pair of speeches from European Central Bank President Mario Draghi for fresh clues on when the central bank will to shift away from its ultra-easy policy.
Market players will also focus on remarks from Bank of England Governor Mark Carney amid recent calls from policymakers for higher interest rates in the months ahead.
In addition, comments from Bank of Canada Governor Stephen Poloz will be on the agenda after the central bank surprised many with a rate increase earlier in September.
Finally, remarks by Bank of Japan Governor Haruhiko Kuroda will be eyed amid growing expectations that the Japanese central bank will lag its global peers in tightening monetary policy.
Ahead of the coming week, Investing.com has compiled a list of the five biggest events on the economic calendar that are most likely to affect the markets.
1. Fed Chair Yellen Speaks
After signaling that it still intends to raise rates in December last week, the Fed is keeping itself in the market’s sights, with Chair Janet Yellen due to deliver a speech titled “Inflation, Uncertainty, and Monetary Policy” at the National Association for Business Economics’ Annual Meeting in Cleveland at 4:45PM ET (2045GMT) Tuesday.
Her comments will be monitored closely for any new insight on policy. Last week, the U.S. central bank kept interest rates unchanged but hinted that an increase could still come in December.
Staying on the central bank front, this week will also see comments from a handful of Fed speakers including influential New York Fed President William Dudley, Vice Chair Stanley Fischer, Governor Lael Brainard, Minneapolis Fed chief Neel Kashkari, Chicago Fed President Charles Evans and Philadelphia President Patrick Harker.
On the data front, final figures on second-quarter economic growth are due on Thursday, followed by reports on personal income and spending on Friday, which includes the personal consumption expenditures inflation data, the Fed’s preferred metric for inflation.
This week’s calendar also features data on CB consumer confidence, new home sales, durable goods orders and weekly jobless claims.
Investors are also likely to continue to monitor the latest headlines coming out of Washington in regard to tax reform. Ongoing tension between the U.S. and North Korea will also be in focus.
2. ECB President Draghi Delivers Comments
ECB President Mario Draghi is due to testify about the economy and monetary developments before the European Parliament Economic and Monetary Affairs Committee in Brussels on Monday at 1300GMT (9:00AM ET).
On Friday, Draghi is scheduled to speak about central bank independence at a conference hosted by the Bank of England in London at around 1415GMT (10:15AM ET).
Draghi indicated last month that the ECB could start tapering its massive stimulus program as early as October.
Besides Draghi, the euro zone will publish flash inflation figures for September on Friday. Germany, France, Italy and Spain will produce their own CPI reports throughout the week.
Meanwhile, Germans are scheduled to vote in a national election on Sunday that is likely to see Chancellor Angela Merkel win a historic fourth term and a far-right party enter parliament for the first time in more than half a century.
3. BoE Governor Carney in Focus
Governor Mark Carney is due to deliver opening remarks at the Bank of England’s conference celebrating 20 years of independence in London at 0815GMT (4:15AM ET) Thursday. He is then scheduled to make closing statements at around 1445GMT (10:45AM ET) Friday.
The BoE said earlier this month that it was likely to raise borrowing costs in the months ahead if the economy and price pressures kept growing, flagging Britain’s first rate hike in a decade.
Besides the BOE, traders will focus on a final reading of second quarter economic growth due on Friday for further indications on the continued effect that the Brexit decision is having on the economy.
4. BoC’s Poloz on the Agenda
BoC Governor Stephen Poloz is due to speak about recent development in the Canadian economy and implications for monetary policy at the St. John’s Board of Trade luncheon in Newfoundland at about 11:45AM ET (1545GMT) Wednesday.
The Canadian central bank surprised many with a rate increase earlier this month, its second this year, and left the door open to further hikes amid strong economic growth.
According to a recent poll of primary dealers, the BoC is likely done raising interest rates this year, though the central bank is seen charting a more aggressive tightening path for 2018 than had been anticipated.
5. BoJ Governor Kuroda Speaks
BoJ Governor Haruhiko Kuroda is due to speak at a meeting with business leaders in Osaka at 0535GMT (1:35AM ET) Monday. Audience questions are expected.
Kuroda is scheduled to speak again at 0635GMT (2:35AM ET) Thursday, this time at the National Securities Industry Convention in Tokyo.
The Japanese central bank kept monetary policy steady last week, as a new board member dissented in favor of further monetary easing, saying current monetary policy was insufficient to push inflation up to the bank’s 2% target.