Last week, both the European Central Bank and the Bank of Japan maintained their respective Monetary Policies. Interest Rates were left unchanged along with Asset Purchase Programs. Most Economic Data in Europe indicated continuing strengthening of the economy. In Japan, December Consumer Price Index Data disappointed yet again.
The Federal Reserve Open Market Committee (FOMC) meets on January 30 and 31 with no policy change anticipated. It is Chair Janet Yellen’s last meeting, with Jerome Powell taking over on February 3. Expected, are fourth quarter initial estimates of Gross Domestic Product for the EuroZone and France.
The monthly personal income and outlays report will unbundle December’s Data from last week’s GDP Report for Q4. Unsustainable strength is the risk with January’s consensus for the Dallas Fed General Activity Index.
The strength of the Euro was recognised when Mario Draghi mentioned exchange rate volatility quite early in the introductory statement. In March, the Forex and Stock Markets highly anticipate that the ECB will release new staff forecasts and might provide the ECB Governing Council with the opportunity to announce some changes to the forward guidance and maybe provide some hints as to what will happen after September.
On the Market Sentiments front, German Bunds plummeted Monday, as investors await Employment Report and the 5-Year Auction, both due to be released Wednesday, January 31.
10:00 AM GMT EuroZone Business and Consumer Survey (Jan)
10:00 AM GMT EuroZone GDP (QoQ)/ (YoY)
01:00 PM GMT German CPI (MoM) (Jan)
02:00 PM GMT United States S&P/ CS HPI Composite – 20 n.s.a (YoY) (Nov) 03:00 PM GMT United States CB Consumer Confidence (Jan) 03:30 PM GMT BoE Gov Carney Speaks 12:30 AM GMT Australia CPI (QoQ) (Q4)
01:30 AM GMT China Manufacturing PMI (Jan)
02:00 AM GMT President Donald Trump Speaks