Welcome to the easyMarkets weekly outlook starting this Monday 16 January. We’ll be looking at the week’s key economic events on the financial calendar covering Monday to Thursday. Be sure to catch up with our Friday morning report that looks back at how the events played out and with a look at Friday’s events.
Event: Bank of England’s Governor Carney Speech
Date: Monday 16 January 2017 at 18:30 GMT
Markets affected: GBP/USD, EUR/GBP
Trending hashtags: #boe, #gbp
Governor Mark Carney is also the Chairman of the Monetary Policy Committee, the Financial Policy Committee and the Board of the Prudential Regulation Authority. With that much influence, his speeches are followed closely and volatility for the pound is expected. Last week he commented that the BOE will be improving its economic forecast regardless of concerns over Brexit.
Event: UK Consumer Prices
Date: Tuesday 17 January 2017 at 09:30 GMT
Markets affected: GBP/USD, EUR/GBP
Trending hashtags: #boe, #gbp
A raft of UK indicators will be released on Tuesday at the same time including Retail Price Index, House Price Index, PPI and Core PPI. The Consumer Price Index is perhaps the more important pointer to inflation and will be closely watched by investors. November’s figure was an increase on the previous month’s at 1.2% thanks to a rise in the price of clothing and petrol. The pound’s decline, however, is expected to increase clothing inflation during 2017. A lower pound may see an increase in raw materials imported, forcing businesses to pass the costs onto consumers. The BOE is expecting inflation to rise to 2.7% for the year, above its 2% target.
Event: US Consumer Price Index (YoY, Dec)
Date: Wednesday 18 January 2016 at 15:30 GMT
Markets affected: EUR /USD
Trending hashtags: #usd , #cpi
November’s Consumer Prices slowed for the US but this seemed to be a blimp in an otherwise more inflationary environment. Consumer Price rose 0.2%, as analysts expected. On a year-on-year basis the CPI rose 1.7%, the largest rise it’s seen in over 2 years. With the Fed raising rates and President-elect Trump’s promises of tax cuts and infrastructure spending, the economy reacted well. December’s figure may well reflect this confidence.
Event: Bank of Canada Interest Rate Decision
Date: Wednesday 18 January 2017 at 15:00 GMT
Markets affected: CAD/USD
Trending hashtags: #cad, #boc
Even with a weakening Canadian dollar and amid fiscal and trade concerns, the interest rate is expected to remain unchanged at 0.5%. Even though the global economy is showing some positivity, business confidence and investment in the nation is remaining tight.
Event: ECB Interest Rate Decision
Date: Thursday 18 January 2017 at 12:45 GMT
Markets affected: EUR/USD, EUR/GBP
Trending hashtags: #interestrate, #eur
Interest rates were kept unchanged by the European Central Bank last month and asset purchases were reduced from 80 billion euros per month to 60 billion. The ECB also increased the duration of bond-buying for another 9 months to see out the rest of this year. The EU central bank seems set on continuing to support the region’s economy. Any more positive signs from the bank like this may only prove good news for euro bulls.
Welcome to the easyMarkets weekly outlook starting this Monday 16 January. We’ll be looking at the week’s key economic events on the financial calendar covering Monday to Thursday. Be sure to catch up with our Friday morning report that looks back at how the events played out and with a look at Friday’s events.
Governor Mark Carney is also the Chairman of the Monetary Policy Committee, the Financial Policy Committee and the Board of the Prudential Regulation Authority. With that much influence, his speeches are followed closely and volatility for the pound is expected. Last week he commented that the BOE will be improving its economic forecast regardless of concerns over Brexit.
A raft of UK indicators will be released on Tuesday at the same time including Retail Price Index, House Price Index, PPI and Core PPI. The Consumer Price Index is perhaps the more important pointer to inflation and will be closely watched by investors. November’s figure was an increase on the previous month’s at 1.2% thanks to a rise in the price of clothing and petrol. The pound’s decline, however, is expected to increase clothing inflation during 2017. A lower pound may see an increase in raw materials imported, forcing businesses to pass the costs onto consumers. The BOE is expecting inflation to rise to 2.7% for the year, above its 2% target.
November’s Consumer Prices slowed for the US but this seemed to be a blimp in an otherwise more inflationary environment. Consumer Price rose 0.2%, as analysts expected. On a year-on-year basis the CPI rose 1.7%, the largest rise it’s seen in over 2 years. With the Fed raising rates and President-elect Trump’s promises of tax cuts and infrastructure spending, the economy reacted well. December’s figure may well reflect this confidence.
Even with a weakening Canadian dollar and amid fiscal and trade concerns, the interest rate is expected to remain unchanged at 0.5%. Even though the global economy is showing some positivity, business confidence and investment in the nation is remaining tight.
Interest rates were kept unchanged by the European Central Bank last month and asset purchases were reduced from 80 billion euros per month to 60 billion. The ECB also increased the duration of bond-buying for another 9 months to see out the rest of this year. The EU central bank seems set on continuing to support the region’s economy. Any more positive signs from the bank like this may only prove good news for euro bulls.
The post Monday 16-01-2017 Outlook appeared first on Forex.Info.
Source: Easy Forex Forex.Info
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