Forex News – Week ahead: more data to shed light on fed tapering pace
January 13, 2014 1:20 pm
Following the weaker-than-expected employment report the previous Friday, the main focus of the week ahead will be what fresh data imply about the strength of the US economy. Specifically, a key number that will be watched is the advance December retail sales for the United States. This report should yield crucial clues as to how the US consumer behaved during the all-important Christmas shopping period. Strong spending during that period could provide the economy with a substantial boost and will provide the Federal Reserve with the confirmation that it’s ok to cut the monthly stimulus by an additional 10 billion dollars to 65 billion, when the Fed governors next meet to decide policy on January 28/29.
US producer prices on Wednesday and consumer prices on Thursday could also help the Fed gain some insights to inflation pressures. Inflation numbers might start to gain a greater significance looking forward. This is because the importance of the unemployment rate is under fire following its big drop as a result of unemployed people stopping to look for work. On Friday, housing starts, building permits, industrial production and University of Michigan consumer confidence wrap up a busy week for US economic data. No single indicator this week will have the importance of the employment report, but taken together they should give a better idea of economic conditions.
In addition, Fed speakers like Evans, Plosser and Fisher as well as the Fed’s Beige Book on Wednesday may give some additional hints as to how the Fed views the economy and the possible course of monetary policy.
US 4th quarter corporate earnings announcements also begin in the week ahead, which could help to shape risk sentiment in the world’s biggest stock market.
Regarding the Eurozone, industrial production figures for November could attract some interest on Tuesday, while the final reading on January’s CPI, released on Thursday, will be looked at for any revisions that could eventually influence the ECB and make it get up from the fence. Staying in Europe, Tuesday’s December inflation figures for the UK and December retail sales figures on Friday could move the pound as it tries to break its previous 2-year high versus the US dollar.
Finally in Japan, Tuesday will see the release of bank lending, current account and trade account figures. Wednesday will feature money supply data and machine tool orders. Thursday’s machinery orders and Friday’s household confidence will wrap up a busy week for Japan-watchers as the yen has entered 2014 in a fighting mode and is trying to reclaim some of the ground it lost in 2013 against the dollar and the euro.
Following the weaker-than-expected employment report the previous Friday, the main focus of the week ahead will be what fresh data imply about the strength of the US economy. Specifically, a key number that will be watched is the advance December retail sales for the United States. This report should yield crucial clues as to how the US consumer behaved during the all-important Christmas shopping period. Strong spending during that period could provide the economy with a substantial boost and will provide the Federal Reserve with the confirmation that it’s ok to cut the monthly stimulus by an additional 10 billion dollars to 65 billion, when the Fed governors next meet to decide policy on January 28/29.
US producer prices on Wednesday and consumer prices on Thursday could also help the Fed gain some insights to inflation pressures. Inflation numbers might start to gain a greater significance looking forward. This is because the importance of the unemployment rate is under fire following its big drop as a result of unemployed people stopping to look for work. On Friday, housing starts, building permits, industrial production and University of Michigan consumer confidence wrap up a busy week for US economic data. No single indicator this week will have the importance of the employment report, but taken together they should give a better idea of economic conditions.
In addition, Fed speakers like Evans, Plosser and Fisher as well as the Fed’s Beige Book on Wednesday may give some additional hints as to how the Fed views the economy and the possible course of monetary policy.
US 4th quarter corporate earnings announcements also begin in the week ahead, which could help to shape risk sentiment in the world’s biggest stock market.
Regarding the Eurozone, industrial production figures for November could attract some interest on Tuesday, while the final reading on January’s CPI, released on Thursday, will be looked at for any revisions that could eventually influence the ECB and make it get up from the fence. Staying in Europe, Tuesday’s December inflation figures for the UK and December retail sales figures on Friday could move the pound as it tries to break its previous 2-year high versus the US dollar.
Finally in Japan, Tuesday will see the release of bank lending, current account and trade account figures. Wednesday will feature money supply data and machine tool orders. Thursday’s machinery orders and Friday’s household confidence will wrap up a busy week for Japan-watchers as the yen has entered 2014 in a fighting mode and is trying to reclaim some of the ground it lost in 2013 against the dollar and the euro.
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