The bullish movement in the stock market is gaining speed, and Bitcoin ETFs are closer than they might seem. What do we need to know for the next trading week?
Important events on February 17-21
Whether we want it or not, the outbreak of the so-called “Chinese virus” will continue to affect the risk sentiment in the markets. The new cases are reported every day, and, as this week showed us, the number of them may be quite unexpected. The major analytical institutions have already highlighted the negative impact of the outbreak on the global economy. Thus, the market remains sensitive to the news on this matter. The rise in new cases will result in the risk-off sentiment. In case of positive news (for example, an invention of a vaccine), we expect the risky mood across the markets to stabilize.
On the third day of the trading week, both Canada and Great Britain will publish their CPI. According to the forecasts, the monthly release of Canadian inflation will advance by 0.3%. As for the UK inflation, analysts are optimistic, too. The indicator is forecast to advance by 1.7%. Higher-than-expected figures will support the domestic currencies.
Insights into the Fed’s plans
The USD has been a great performing currency during the current week. Its further direction depends on important events and releases. Among them, the FOMC meeting minutes expected on Wednesday at 21:00 MT time has a high chance to affect the US currency. While the Fed announced its plans for the stable monetary policy during the previous meeting, at the same time it highlighted the interest in gearing up the inflation level to be closer to the bank’s target. If we see any dovish hints in the recording, the USD will weaken. On the other hand, if the Fed is hawkish, the USD will get stronger.
Australian job data
On Thursday, at 2:30 MT time, Australia will publish employment change and unemployment rate. Analysts anticipate employment change to advance by 10K jobs and the unemployment rate to reach 5.2%. Let’s see how coronavirus fears affected the employment levels for the closest China’s trade partner. If employment change is greater, and the unemployment rate is lower than the forecasts, the AUD will rise.
The euro may move on Friday
The whole bunch of European PMI will provide trading opportunities on Friday. We will see the French services, German flash manufacturing, German flash services PMIs. Will the euro see the fresh lows next week?
More tariffs were introduced
On Wednesday, American stock index futures went up, pointing to a firm start for Wall Street due to the fact that Apple’s stellar outcomes and forecast soothed worries about the decelerating surge in corporate gains…
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.