The Bank of England will announce its policy statement on December 16, Thursday, at 14:00 GMT+2 (MetaTrader time). It will affect all the pairs with the British pound.
All eyes on global central banks
The outbreak of coronavirus has caused a severe selloff across the global markets. Last week was the worst since the financial crisis. Economic activity in China has notably declined and the same may happen to other major economies over the next few days and weeks.
Such situation has led to rumors that central banks will intervene to protect price stability. Earlier this morning, multiple sources have stated that the G7 will have a teleconference later this week.
Multiple central banks also sent out a statement stating that they would use the tools appropriate to support the economy. This is a clear sign that there might be a coordinated action by the central banks any moment, which will have a major impact on the markets.
Why is it important for traders?
In particular, such an event will support S&P 500 and other stock indexes. The short-term reaction of XAU/USD may be negative. The currency pairs which will be the most affected by the news are AUD/USD, NZD/USD, and USD/JPY.
Remember that proper risk management in needed in times of abnormal volatility.
The US central bank, Federal Reserve, will announce its decision on further monetary policy on December 15 at 21:00 MT.
The US will publish the Producer Price Index (PPI) on December 14, Tuesday, at 15:30 GMT+2 (MetaTrader time).
Australia will publish its Inflation Rate on January 25, at 02:30 MT time.
Germany will release the flash Purchasing Managers' Index (PMI) for manufacturing and services industries at 10:30 GMT+2 on January 24.
Leibniz Centre for European Economic Research (ZEW) will release an economic sentiment index for Germany on January 18, 12:00 GMT+2