Summary:
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ECB and Norges Bank about to hold their meetings today
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German IFO Business Climate to take the stage in the morning
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Pack of US and Canadian data in the afternoon
A long-awaited day one the markets has come. Today’s main event is unquestionably ECB meeting or more precisely press conference of President Draghi as he will need to address the latest appreciation of single currency as well as more hawkish Minutes from the last meeting. Apart from that, Norges Bank will also hold its meeting. A pack of data from the US and Canada is scheduled for release in the afternoon.
9:00 am BST – Norway, Interest Rate Decision. First meeting of the Norges Bank Monetary Policy Committee in 2018. Central bankers are expected to leave the main rate unchanged at the level of 0.50%. The latest figures has shown that the Norway’s inflation accelerates as they came in at 1.6% YoY against 1.5% expected. However, the target of 2.5% still seems distant therefore we should not expected any extraordinary moves from Norges Bank.
9:00 am BST – Germany, IFO Business Climate for January. Index rating sentiment of businesses in Germany. It measures both current and future conditions. The survey is conducted among manufacturers, builders, wholesalers and retailers. This time market consensus points for a print of 117 what would be a slight downside against 117.2 pts seen last time.
12:45 pm BST – Eurozone, Interest Rate Decision. Probably the most important event this week. The European Central Bank will make decision on the interest rates. They are expected to be left at the current level of 0.50%. However, given the recent appreciation of the euro and the more hawkish Minutes from the last meeting a press conference of President Mario Draghi (1:30 pm BST) may turn out to be a real market mover.
1:30 pm BST – US, Initial Jobless Claims. A weekly data from the US labour market. Last time a reading surprised investors positively as it came out at 220k against 250k expected. This time surveyed economists point for a print of 236k.
1:30 pm BST – Canada, Retail Sales for November. An important data from Canada. Retail sales are important indicator of consumer spending that accounts for the majority of Canadian economic activity. This time market consensus calls for a reading of 0.8% MoM against 1.5% MoM seen last time.
3:00 pm BST – US, New Home Sales for December. A measures concerning number of new single-family homes sold during prior month. Last month’s print surprised traders to the upside as it has shown a 733k increase against 654K expected. This time survey among economists points for the reading of 675k.
EURUSD is still marching higher and higher. Will Mario Draghi shake the market? Source: xStation5