The ECB Monetary Policy Meeting Accounts will be released at 14:30 MT on January 16
5 important events this week will bring us!
- Rate statement by the Bank of Canada (Wed, 17:00 MT (14:00 GMT)) – The changes to the current interest rate are not expected, but the central bank may throw some hints on the possible changes of its monetary policy in the future.
- Australian building approvals and private capital expenditure (Thu, 4:30 MT (1:30 GMT)) – According to the forecasts, the number of building approvals will increase by 0.1%. As for the level of private capital expenditure, it is expected to advance by 0.5%. Higher figures will support the Australian dollar.
- US Preliminary GDP (Thu, 15:30 MT (12:30 GMT)) – The GDP growth of the US is forecast to rise by 3.1%. If the actual level is higher, the USD will get stronger.
- Chinese Manufacturing PMI (Fri, 4:00 MT (1:00 GMT)) – The indicator will affect not only the Chinese yuan but also the risk sentiment in the market, due to the escalation of the US-China trade tensions. According to the forecasts, it will decline to 49.9 points. Higher figures will push the CNH and the risk-weighted currencies higher.
- Canadian GDP (Fri, 15:30 MT (12:30 MT)) – If the actual level of indicator is higher than the forecast, the CAD will rise.
- During the weekend, the US president Donald Trump met with Japanese Prime Minister Shinzo Abe for trade talks. Today they are going to discuss the key issues. According to Trump’s comments on twitter, the sides have made significant progress in trade negotiations, but the final deal is expected to be reached after July's elections in Japan.
- The trade tension between the US and China have intensified. Up to now, we anticipate extra 25% tariffs on $200 billion of Chinese exports to the US and on $60 billion of US exports to China at the end of this week. At the same time, Donald Trump said that the US was not ready to make a trade deal with China.
- After the European elections last week, the EU leaders will decide who will be the next president of the European Central Bank after Mario Draghi. During the EU summit dinner on May 28, they are going to discuss the top political appointments.
- Theresa May resigned from her post as a Prime Minister on Friday. The leaders who may replace Theresa May, including Boris Jonson and Dominic Raab, say they want the EU to reopen the negotiations on the UK withdrawal agreement.
We expect the US-China phase one trade deal to be signed on Wednesday and multiple important indicators for the USD. Plus, it is the first week of the earnings reports
The British yearly CPI will be released at 11:30 MT on January 15
You are still in doubt whether it makes sense to trade stocks? Watch this.
The recent Chinese figures bring optimism
On Thursday, January 16 two central banks: the Reserve bank of South Africa and the Turkish Central Bank will make their interest rate decisions.