This week is full of economic events. The main focus of investors will be on the Bank of Japan meetings and the inflation data in major economies such as the United Kingdom, Japan, Canada, Germany, and the Eurozone. Also, this week is the World Economic Forum in Davos, Switzerland. On the agenda are the cost of living crisis, the threat of natural disasters, extreme weather events, and geopolitics. Investors will also focus on corporate earnings, which will be reported for the 4th quarter.
Monday, January 16
The US stock market will be closed on Monday due to Martin Luther King Day. So the main events on Monday will be the speech of the Governor of the Bank of England and the Business Outlook for Canada.
Main events of the day:
- World Economic Forum Annual Meetings at 10:00 (GMT+2);
- UK BoE Gov Bailey Speaks at 17:30 (GMT+2);
- Canada Business Outlook Survey at 17:30 (GMT+2).
Tuesday, January 17
Tuesday will be full of economic events. Important macroeconomic statistics on China will be released early in the day, undoubtedly increasing volatility in Asian indices. Traders should also pay attention to the unemployment rate in the United Kingdom. The Bank of England takes this indicator into account to regulate monetary policy. There will also be inflation updates in Germany and Canada, and traders should not miss these events. Analysts expect a decrease in inflationary pressures.
Main events of the day:
- China GDP (q/q) at 04:00 (GMT+2);
- China Industrial Production (m/m) at 04:00 (GMT+2);
- China Retail Sales (m/m) at 04:00 (GMT+2);
- China Unemployment Rate (m/m) at 04:00 (GMT+2).
- UK Average Earnings Index (m/m) at 09:00 (GMT+2);
- UK Claimant Count Change (m/m) at 09:00 (GMT+2);
- UK Unemployment Rate (m/m) at 09:00 (GMT+2);
- German Consumer Price Index (m/m) at 09:00 (GMT+2);
- World Economic Forum Annual Meetings at 10:00 (GMT+2);
- German ZEW Economic Sentiment (m/m) at 12:00 (GMT+2);
- Eurozone ZEW Economic Sentiment (m/m) at 12:00 (GMT+2);
- Canada Consumer Price Index (m/m) at 15:30 (GMT+2);
- US NY Empire State Manufacturing Index (m/m) at 15:30 (GMT+2);
- US FOMC Member Williams Speaks at 22:00 (GMT+2).
Wednesday, January 18
The main event on Wednesday will be the Consumer Price Index in the United Kingdom and the Eurozone. Analysts expect inflation in the UK to decrease, but there may be surprises, so volatility in currency pairs with the British pound will increase. For the Eurozone, consumer prices are expected to remain unchanged. A separate event that traders should take advantage of is the Bank of Japan interest rate meeting. The rate is expected to be unchanged, but there might be first steps towards monetary policy normalization, so the volatility on the JPY pairs will increase.
Main events of the day:
- Japan BoJ Interest Rate Decision at 05:00 (GMT+2);
- Japan BoJ Monetary Policy Statement at 05:00 (GMT+2);
- Japan BoJ Outlook Report at 05:00 (GMT+2);
- Japan Industrial Production (m/m) at 06:30 (GMT+2);
- Japan BoJ Press Conference (Tentative);
- UK Consumer Price Index (m/m) at 09:00 (GMT+2);
- World Economic Forum Annual Meetings at 10:00 (GMT+2);
- Eurozone Consumer Price Index (m/m) at 12:00 (GMT+2);
- US Retail Sales (m/m) at 15:30 (GMT+2);
- US Producer Price Index (m/m) at 15:30 (GMT+2);
- US Industrial Production (m/m) at 16:15 (GMT+2);
- US FOMC Member Harker Speaks at 21:00 (GMT+2).
Thursday, January 19
Thursday’s main events will be the Australian labor market data. With inflation on the rise, the RBA is still on track to tighten monetary policy, so strong labor market data could strengthen the Australian currency. Also, traders should not miss the US Crude Oil Inventories data, which has a significant impact on oil prices.
Main events of the day:
- Australia Unemployment Rate (m/m) at 02:30 (GMT+2);
- World Economic Forum Annual Meetings at 10:00 (GMT+2);
- Eurozone ECB President Lagarde Speaks at 12:30 (GMT+2);
- US Building Permits (m/m) at 15:30 (GMT+2);
- US Initial Jobless Claims (w/w) at 15:30 (GMT+2);
- US Philadelphia Fed Manufacturing Index (m/m) at 15:30 (GMT+2);
- US Natural Gas Storage (w/w) at 17:30 (GMT+2);
- US Crude Oil Reserves (w/w) at 18:00 (GMT+2);
- US FOMC Member Brainard Speaks at 20:15 (GMT+2).
Friday, January 20
The most important Friday’s release for investors will be the inflation rate data in Japan. Analysts expect inflation to rise to 4%, the highest in 40 years. The volatility of currency pairs with the Japanese yen will increase. Investors should also focus on the speeches of ECB head Christine Lagarde and SNB chairman Thomas Jordan.
Main events of the day:
- Japan National Core Consumer Price Index at 01:30 (GMT+2);
- US FOMC Member Williams Speaks at 01:34 (GMT+2).
- UK Retail Sales (m/m) at 09:00 (GMT+2);
- World Economic Forum Annual Meetings at 10:00 (GMT+2);
- Switzerland SNB Chairman Jordan Speaks at 10:00 (GMT+2);
- Eurozone ECB President Lagarde Speaks at 12:00 (GMT+2);
- Canada Retail Sales (m/m) at 15:30 (GMT+2);
- US FOMC Member Harker Speaks at 16:00 (GMT+2);
- US Existing Home Sales (m/m) at 17:00 (GMT+2);
- US FOMC Member Waller Speaks at 20:00 (GMT+2).
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.
