IronFX Daily Commentary by Charalambos Pissouros | 19/01/2017
January 19, 2017 9:25 am
ECB to remain on hold and maintain a balanced tone • ECB is widely expected to keep policy unchanged. Focus will probably be on Draghi’s press conf. • Data have improved since the Dec. meeting (headline CPI rate at highest lvl. since 2013). • But core inflation has not shown signs of significant progress. Thus, we expect Draghi to maintain a balanced tone overall. • The reaction in EUR may be fairly limited, unless Draghi sounds more optimistic than we expect.
BoC: A rate cut is still on the table • BoC remained on hold as exp. and maintained a neutral bias in the accompanying statement. • Market reaction was limited until the press conf. Gov. Poloz said a rate cut remains a possibility. • CAD collapsed. Given these dovish remarks, CAD could remain under selling interest for a while.
Fed’s Yellen maintains her upbeat stance • Said the US is “near maximum employment and inflation is moving toward our goal”. • USD gained on her upbeat comments. Now, focus turns to Trump’s inaugural speech tomorrow.
As for the rest of today’s highlights: • Eurozone: Current account balance for Nov. Usually not a major market mover. • US: Building permits and housing starts, both for Dec. Also, Philly Fed business index for Jan and initial jobless claims for week ended 13th Jan.
Speakers: UK PM Theresa May speaks in Davos. Also, San Francisco Fed Pres. John Williams
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ECB to remain on hold and maintain a balanced tone
• ECB is widely expected to keep policy unchanged. Focus will probably be on Draghi’s press conf.
• Data have improved since the Dec. meeting (headline CPI rate at highest lvl. since 2013).
• But core inflation has not shown signs of significant progress. Thus, we expect Draghi to maintain a balanced tone overall.
• The reaction in EUR may be fairly limited, unless Draghi sounds more optimistic than we expect.
BoC: A rate cut is still on the table
• BoC remained on hold as exp. and maintained a neutral bias in the accompanying statement.
• Market reaction was limited until the press conf. Gov. Poloz said a rate cut remains a possibility.
• CAD collapsed. Given these dovish remarks, CAD could remain under selling interest for a while.
Fed’s Yellen maintains her upbeat stance
• Said the US is “near maximum employment and inflation is moving toward our goal”.
• USD gained on her upbeat comments. Now, focus turns to Trump’s inaugural speech tomorrow.
As for the rest of today’s highlights:
• Eurozone: Current account balance for Nov. Usually not a major market mover.
• US: Building permits and housing starts, both for Dec. Also, Philly Fed business index for Jan and initial jobless claims for week ended 13th Jan.
Speakers: UK PM Theresa May speaks in Davos. Also, San Francisco Fed Pres. John Williams
Join us for more technical and fundamental analysis: http://www.ironfx.com
To get the latest Forex trading news you should:
• Download the IronFX Research app: http://goo.gl/jhQIxO
• Like us on Facebook: https://www.facebook.com/IronFX
• Follow us on Instagram: https://www.instagram.com/ironfx
• Follow us on LinkedIn: https://goo.gl/wSEbPN
• Follow us on Twitter: https://twitter.com/IronFXGlobal
• Circle us on Google+: https://www.google.com/+Ironfxglobal
• Subscribe to our Channel: http://bit.ly/1foFmCU
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