The super central bank week is coming, and it is the central bank that institutions think will cut interest rates in advance?!

This week, five developed world central banks will hold interest rate meetings and the United States will release inflation data that could make or break market hopes for a quick rate cut early next year.

Last week's upbeat non-farm payrolls report has led investors to lower their expectations for a rate cut by the Federal Reserve in March, although the probability of a rate cut in May remains 76%.

The outside world believes that the Federal Reserve will definitely maintain interest rates at the level of 5.25-5% this week, and the focus of the market is on the dot plot of interest rates and the press conference of Federal Reserve Chairperson Jerome Powell (Jerome Powell).

Tuesday's U.S. consumer price report for November will also weigh on the outlook, with analysts expecting headline inflation to remain unchanged and core inflation to rise 0.3 percent.

"We are expecting another positive CPI report for the Fed, but barring surprises, expect the policy statement to indicate that economic conditions have not changed enough for officials to abandon their tightening bias," said John Briggs, head of global strategy at NatWest Markets.

"We think Mr. Powell will keep the option of a possible rate hike, but the hurdles for the Fed to move further appear considerable," he added. "We also expect the ECB to cut rates earlier and the Bank of England to continue resisting market expectations for a rate cut in the first half of 2024."

The European Central Bank, the Bank of England, Norway's central bank and the Swiss National Bank are all due to meet on Thursday, with Norway the only country seen as likely to raise interest rates. There is also a risk that the SNB could re-intervene to weaken the franc.

All eyes were on the yen, which had seen some wild swings on speculation that the Bank of Japan could signal a further retreat from ultra-loose policy at its meeting next week.

The dollar performed better against the euro, trading around 1.0765 as expectations of an early rate cut by the European Central Bank weighed on the euro.

"With eurozone inflation falling rapidly, we do not expect the ECB's post-meeting communications to provide much resistance to current market pricing for the rate cut cycle that began in April," CBA analysts said in a note.

Analysts added: "We expect the first rate cut to come later in June."

In the commodities market, gold took a hit after the jobs report was released and is currently trading at $1,993 an ounce.

Oil prices edged higher, falling 3.9% last week to a five-month low on doubts that all OPEC + members would stick to production cuts. When Washington announced it would rebuild its strategic petroleum reserve, prices received some support.

Markets will also be watching the outcome of the COP28 climate summit, which is working on the first agreement to phase out global fossil fuel use. Brent crude futures rose 53 cents to $76.37 a barrel and US crude rose 47 cents to $71.70 a barrel.