Notable events on the Forex market on the week January 20-24

How does the year begin for Australian consumers?

Westpac Consumer Sentiment will be announced at 01:30 MT time on Wednesday (Tuesday, 23:30 GMT). This indicator shows the overall economic activity status in the country through polling more than 1000 households and obtaining their feedback on past and future economic conditions. The December release was at -1.9; if this week’s indicator comes higher than forecast, it will mean an improved economic outlook.

Jobs data will be released at 02:30 MT time (00:30 GMT) on Thursday. Almost 40K jobs added referring to November were much more than what the market expected, for December analysts look for 11.2K new jobs. If the actual figure outperforms the forecast again, the AUD will be supported.

BOC takes the word

The Canadian interest rate will be announced at 17:00 MT (15:00 GMT) on Wednesday. No change is expected to the current level of 1.75%, so the main focus will be at the BOC’s press conference following at 18:15 MT (16:15 GMT). If there are dovish notes, CAD may be under pressure down.

How long quantitative easing will continue?

ECB’s press conference will be at 15:30 MT time (13:30 GMT) on Thursday, after the interest rate announcement at 14:45 MT time (12:45 GMT) the same day. Also, a separate speech by the ECB president Christine Lagarde is scheduled at 11:30 MT time (09:30 GMT) on Friday. As there is no change foreseen for the rate itself, the audience will wait for the hints in the speech of the ECB President, particularly to outline the quantitative easing that the policymakers have been pressing on. Continuation of this line drives the EUR down.

The Brexit year begins for the British economy

The British PMI will be released at 11:30 MT time (09:30 GMT) on Friday. While the ECB President is unveiling the economic outlook for the Eurozone, the GBP will receive something to move on. The forecast referring to the month of December is slightly higher than the figures of the previous release for both the manufacturing and service sectors. If the results outperform what the market expects on Friday, the GBP will receive a boost.

Lastly

Using these events, you may trade AUD/USD and USD/CAD, referring to the Australian and Canadian indicators, and EUR/GBP within the context of the announcements from the UK and European economic authorities. However, other pairs with the mentioned currencies will be affected as well. That's why we welcome you to follow the news with FBS and see particular trade ideas offered daily.