Global Focus on Japan GDP and Canada Inflation to Shape Central Bank Policies

Global markets are shifting their focus toward a series of high-impact economic releases next week, with Japan's GDP growth and Canada's inflation figures taking center stage. A projected rebound in Japan's fourth-quarter GDP is expected to support the Bank of Japan's (BoJ) ongoing plans to normalize monetary policy through interest rate hikes. Meanwhile, January's Consumer Price Index (CPI) data from Canada may offer the Bank of Canada (BoC) some breathing room as core inflation shows signs of cooling. In emerging markets, the release of Banxico's meeting minutes and Brazil's economic activity data will provide further clarity on regional policy trajectories. These diverging economic indicators are likely to drive significant volatility across major currency pairs, including USD/JPY and USD/CAD.