The British monthly GDP is announced on Friday at 09:00 MT time.
5 important events this week will bring us
- RBA rate statement (Tue, 5:30 MT (3:30 GMT)) – According to forecasts, the interest rate will remain steady at 0.75%. We will keep an eye on the monetary policy statement, where the regulator may throw some hints on the possible changes to the monetary policy.
- Canada’s trade balance (Tue, 15:30 MT (13:30 GMT)) – If the actual level of indicator is higher than the forecasts, the CAD will go up.
- New Zealand’s employment change and unemployment rate (Tue, 23:45 MT (21:45 GMT)) – Analysts anticipate the employment change to increase by 0.2%. At the same time, the unemployment rate is forecast to rise to 4.1%. Higher-than-expected figures of employment change and lower level of the unemployment rate will be NZD-positive.
- BOE monetary policy summary (Thu, 14:00 MT (12:00 GMT)) – The interest rate is expected to stay at 0.75%. The possible move for the British pound may come with the release of the monetary policy statement. Any hawkish comments concerning the bank’s policy amid the Brexit mess will support the British pound.
- Canada’s employment change and unemployment rate (Fri, 15:30 MT (13:30 GMT)) – If the actual level of employment change is higher and the unemployment rate is lower than the forecasts, the Canadian dollar will get positive momentum.
- During the ASEAN summit this weekend, Commerce Secretary Wilbur Ross expressed optimism that the US would reach a “phase one” trade deal with China this month and said licenses would be coming soon for American companies to sell components to Huawei Technologies Co. The news boosted the risk-on sentiment in the markets.
- Christine Lagarde will make her first speech as a president of the European Central Bank this evening at 20:30 MT (18:30 GMT) time.
The main market tendency today is that the US dollar is rising against its major peers and riskier assets such as stocks and oil are plummeting.
The US unemployment claims are out on Thursday at 15:30 MT time.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.