The Week Ahead – Earnings, the FED, and a Busy Economic Calendar in Focus
It’s a busy week ahead on the economic calendar, with 60 stats in focus in the week ending 28th January. In the week prior, 57 stats had been in focus.
For the Dollar:
Early in the week, prelim private sector PMIs for January and consumer confidence will be in focus.
The markets will be looking for a pickup in service sector activity and consumer confidence.
On Thursday, 4th quarter GDP and jobless claims will also draw interest. At the end of the week, also expect plenty of interest in inflation and personal spending figures.
The main event of the week, however, is the FED monetary policy decision and press conference. While the rate statement will influence, the press conference will likely be the key driver.
In the week ending 21st January, the Dollar Spot Index rose by 0.50% to 95.642.
For the EUR:
Prelim private sector PMIs for France, Germany, and the Eurozone will be in focus on Monday. Expect plenty of interest in the numbers, particularly with the ECB seeing the economic recovery moderating.
On Tuesday and Wednesday, German business and service sentiment figures will also draw attention.
At the end of the week, the 4th quarter GDP figures for Franc, Germany, and Spain are also due out.
For the week, the EUR fell by 0.59% to $1.1344.
For the Pound:
It’s a relatively quiet week ahead on the economic calendar. Prelim private sector PMIs for January will be due out on Monday. The services PMI will be the key stat of the week.
On Tuesday, CBI industrial orders will also draw interest, however.
Away from the economic calendar, political news updates will need monitoring.
The Pound slid by 0.89% to end the week at $1.3553.
For the Loonie:
It’s a quiet week ahead on the economic calendar. There are no material stats due out of Canada to provide the Loonie with direction.
On the monetary policy front, however, the Bank of Canada will deliver its first policy decision of the year. The markets are expecting a particularly hawkish BoC.
The Loonie ended the week down 0.23% to C$1.2581 against the U.S Dollar.
From the Asia Pacific
For the Aussie Dollar:
Inflation and business confidence figures will be in focus in the week. With little else for the markets to consider, the Aussie Dollar will need a further spike in inflation to force the RBA into a more hawkish position.
The Aussie Dollar fell by 0.31% to $0.7185.
For the Kiwi Dollar:
Trade data will be out mid-week ahead of 4th quarter inflation figures on Thursday. Expect both sets of figures to draw interest.
The Kiwi Dollar ended the week down by 1.28% to $0.6717.
For the Japanese Yen:
It’s a relatively quiet week ahead. Prelim private sector PMIs for January are due out early in the week. Expect the Services PMI to be key.
The Japanese Yen rose by 0.45% to ¥113.680 against the U.S Dollar.
Out of China
There are no major stats from China for the markets to consider in the week.
The Chinese Yuan ended the week up by 0.22% to CNY6.3387 against the U.S Dollar.
Chatter from Russia and the U.S will need tracking along with any news from China and the Middle East.
It’s also corporate earnings season, with a number of big names releasing results that could test support for riskier assets.