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 Reserve bank of Australia (Tue, 7:30 MT (4:30 GMT)) – We anticipate a rate cut from 1.5% to 1.25%. The main reasons behind this decision lie in the intensifying trade tensions between the US and China and the slowdown of inflation. The rate cut is already priced in, that is why it is important to pay attention to the hints on the further decision by the RBA governor Philip Lowe.
- The monetary policy statement by the European central bank (Thu, 14:45 MT (11:45 GMT)) – During this meeting, the rate cut is not expected, but we will focus on the speech by the ECB president Mario Draghi. If he provides positive comments on the outlook of the Eurozone, despite the global pressure, the EUR will rise.
- Canadian trade balance (Thu, 15:30 MT (12:30 GMT)) - Higher-than-expected figures will be positive for the CAD.
- NFP (Fri, 15:30 MT (12:30 GMT)) – According to the forecasts, the level of non-farm payrolls will advance by 180 thousand jobs. Higher figures will be good for the USD.
- Canadian jobs data (15:30 MT (12:30 GMT)) – If the actual level of employment change is higher and the unemployment rate is lower than the forecasts, the CAD will go up.
- Theresa May is about to step down as a leader of the Conservative party on Friday. Her departure will trigger an election that will bring a new leader to power.
- The US dollar slumped to the 5-month low after the forecasts by JP Morgan, Standard Chartered and Barclays for the Fed to cut its interest rate.
- The Italian government will continue the discussion over the difference in fiscal policies with the EU this week.
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
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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.