Monday morning update – 25/01/16 by Michela Jaccarini
January 25, 2016Following ECB President Draghi’s speech last week the euro weakened to a low of 1.0777 but has since recovered slightly and is currently trading at 1.0813. This week is particularly important as on Wednesday we have the US interest rate decision. At the end of 2015 it was speculated that there will be 4 quarterly rate hikes however with the turn of the New Year, China’s situation has changed this possibility. It will be interesting to see how the market prices in this uncertainty in the days leading up to the decision. Following the rate decision, the chair of the FED, Janet Yellen, will give a speech whereby she will discuss the economic situation of the US and what the future holds. Based on what she says, the market will move accordingly.
Fundamental news for this week:
- Monday:
- German Ifo Business Climate Index (Jan)
- ECB President Draghi speaks
- Tuesday:
- BoE Gov Carney speaks
- USD CB Consumer Confidence (Jan)
- Wednesday:
- AUD CPI (QoQ) (Q4)
- USD New Home Sales (Dec)
- USD Crude Oil Inventories
- FOMC Statement
- USD Fed Interest Rate Decision
- NZD Interest Rate Decision
- RBNZ Rate Statement
- Thursday:
- GBP GDP (YoY) (Q4)
- GBP GDP (QoQ) (Q4)
- USD Core Durable Goods Orders (MoM) (Dec)
- Pending Home Sales (MoM) (Dec)
- Friday:
- BoJ Press Conference
- EUR CPI (YoY) (Jan)
- USD GDP (QoQ) (Q4)
- CAD GDP (MoM) (Nov)
