The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
5 important things this week will bring us!
- RBA rate statement (Tue, 5:30 MT (3:30 GMT) time) – The RBA Governor Philip Lowe is expected to leave the interest rate unchanged at 1.5%. However, the comments by him and the members of the Australian central bank may provide volatility to the Australian dollar.
- Australian GDP q/q (Wed, 2:30 MT (00:30 GMT) time) – According to analysts, the level of GDP growth for Australia will increase by 0.5%. Higher-than-expected figures will boost the Australian currency.
- BOC rate statement (Wed, 17:00 MT (15:00 GMT) time) – We anticipate no changes to the current level of interest rate (1.75%). The bank of Canada governor may throw some hints on the possible changes to the current monetary policy. If the BOC is hawkish, the Canadian dollar will rise.
- ECB rate statement and press conference (Thu, 14:45 and 15:30 MT (12:45 and 13:30 GMT) time) – Here we also do not expect changes to the current interest rate, but the ECB president Mario Draghi may comment on the further changes to the current monetary policy. If the European central bank is more confident in the current conditions, the euro will rise.
- US Non-farm employment change (NFP) (Fri, 15:30 MT (13:30 GMT) time) – Analysts forecast the level of NFP to increase by 185 thousand jobs. At the same time, the level of average hourly earnings is forecast to increase by 0.3% and the level of unemployment change is expected to decline to 3.9%. Higher figures for NFP and average hourly earnings and lower figures for unemployment rate will boost the USD.
- Pro-Brexiters in the Conservative party of Great Britain suggested several conditions for supporting Theresa May’s plan at the Parliament.
- Reportedly, China and the US are in the final stage of getting a trade deal. China offers to lower tariffs on American products and the US considers to remove sanctions against Chinese products.
- During the weekend Trump said that strong USD and rate hikes were hurting the economy.
Jump in to know the key market events and trading ideas for this week!
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.
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!