The British monthly GDP is announced on Friday at 09:00 MT time.
5 important things this week will bring us
- Reserve bank of Australia rate statement (Tue, 05:30 MT (03:30 GMT) time) – The rate hike is not expected, but the RBA may change its tone due to the global uncertainties. Any hints on future changes in rates may impact the AUD.
- New Zealand’s jobs data (Wed, 23:45 MT (21:45 GMT) time) – The level of employment change is expected to rise by 0.3%. At the same time, the unemployment rate for the last quarter reached 4.1% according to analysts. Will the actual data support the NZD? Let’s wait for Wednesday.
- Speech by the Fed Chair Jerome Powell (Thu, 02:00 MT (00:00 GMT) time) – The Fed Chair Jerome Powell made some cautious comments on the future monetary policy during the previous meeting. His comments made the USD suffer. Will he sound more optimistic about the global picture this time, after the second round of trade negotiations successfully over?
- Monetary policy summary by the Bank of England (Thu, 14:00 MT (12:00 GMT) time) – The bank of England will not raise its interest rate, but the BOE may provide some support to the GBP amid the Brexit uncertainties.
- Canadian jobs data (Fri, 15:30 MT (13:30 GMT) time) – Last time the actual figures outperformed the forecasts, which made the CAD move higher. The projections for this month have not been announced yet. If the situation repeats itself, the CAD will rise.
- Traders keep their eyes on the Brexit progress. On Monday, Theresa May will meet with an Alternative Arrangements group. This group unites three hardline Brexiteers, who will start to find a solution to the Nothern Ireland backstop. The positive progress will support the British pound.
- Asian markets, including China, Hong Kong, Singapore, Taiwan, South Korea, Malaysia, and Vietnam, will close for the whole week due to the start of the year of the Pig.
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.