Jump in to know the key market events and trading ideas for this week!
5 important things this week will bring us!
What this week will bring us!
- British Average Earnings Index (Tue, 11:30 MT time) – the forecast is neutral. Only greater economic data will pull the GBP out of the negative area.
- British CPI (Wed, 11:30 MT time) – the forecast is encouraging. Will the GBP finally strengthen?
- US Retail Sales and Core Retail Sales (Wed, 15:30 MT time) – the forecast is mixed. Let’s see whether the actual data brings the USD to new highs.
- Australian Job data (Thu, 4:30 MT time) – the forecast is weak. Weak economic data will pull the AUD to lows of the end of 2016.
- Canadian CPI (Fri, 15:30 MT time) – the Canadian dollar needs support in times of the strong USD and the unstable oil market.
- The Turkish lira extends fall, as there is no progress in Turkish-US tensions. Early on Monday, USD/TRY broke above 7. Although the pair has been moving down up to now, the soon recovery of the lira is not anticipated.
- The fall of lira causes problems for the EUR. The European central bank is worried about the European banks’ exposure to Turkey. The euro is in the dangerous zone.
- The plunge of the Turkish lira caused a fall of the emerging market currencies. The South African rand and Mexican peso significantly fell early on Monday. The further escalation of Turkish-US tensions will pull EM currencies further down.
The Canadian central bank will make a monetary policy report and announce interest rates on Wednesday, January 20, at 17:00 MT time. Also, the BOC press conference will be held later.
USD’s rally takes a pause, while riskier assets are modestly rising.
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!