We are now past the middle of January, and this means that the largest US companies will report their earnings for the fourth quarter and many of them will provide the results of the entire 2020.
Japan increases FY 2017 forecasts for capital expenditure, consumption, housing
On Friday, the Japanese government increased its surge forecasts for private consumption, housing investment and capital expenditure for the current fiscal year because domestic demand gains strength.
The Japanese authorities left their overall forecast for GDP surge intact in fiscal 2017 that started in April, because of a sudden dip in inventories as well as moderately slower ascend in fiscal spending.
The government also hopes consumer prices to soar 1.1% this fiscal year and 1.3% next fiscal year, pointing to a relatively slow build up in inflationary pressure.
The forecasts that Prime Minister Shinzo Abe's cabinet will utilize for the purpose of compiling next fiscal year's budget, demonstrate that the Japanese economy will probably keep expanding unless there’s an unexpected and huge external shock.
Consumer spending is supposed to ascend 0.9% in fiscal 2017, surpassing the previous forecast for 0.8% surge published in January.
Housing investment will probably add 0.8% this fiscal year, potentially outperforming the previous prediction of 0.1% surge because the BOJ’s quantitative easing provokes a revival in property development.
As for capital expenditure, it’s expected to add 3.6% this fiscal year, outperforming the previous estimate for a 3.4% soar.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
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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.
USD’s rally takes a pause, while riskier assets are modestly rising.