📣 Markets Watch: Activity Data and Policy Tone in Focus Amid Holiday-Thinned Start (Feb 16–22, 2026)

What to Watch This Week: Key Events: This week begins with reduced U.S. liquidity due to the Presidents’ Day holiday, potentially amplifying early moves across FX and rates. After recent inflation and retail-sales prints, attention now shifts toward activity indicators and central-bank communication. Markets will assess whether growth momentum remains aligned with current policy guidance as February progresses.

 Key Global Economic Events to Watch (Feb 16–22)

📌 Additional Factors to Monitor

• FOMC meeting minutes may provide deeper insight into the Federal Reserve’s reaction function following January’s decision.

• Preliminary PMI readings in Europe will offer an early gauge of business activity heading into late Q1.

🧭 Under-Radar / High-Importance Signals Ahead

• Next Week (Feb 23+): U.S. GDP revisions and core inflation updates could influence how markets interpret this week’s FOMC minutes and PMI data.

• Any meaningful shift in Euro-area PMI momentum may prompt early re-positioning ahead of upcoming European inflation data.

🔎 Key Themes for the Week

• Policy Interpretation: Markets may react more to nuance within FOMC minutes than to headline data.

• Activity Confirmation: PMI and housing data help determine whether growth remains stable after recent inflation signals.

• Liquidity Sensitivity: The holiday-thinned start may exaggerate moves before volumes normalise midweek.