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Jan 15, 2018

BANK OF CANADA RATE DECISION HEADLINES A BUSY WEEK FOR FINANCIAL MARKETS

BANK OF CANADA DECIDE

The Bank of Canada's interest rate decision headlines a busy week for financial markets, which also sees top-tier economic data releases from the UK, EU, Chinese and Australian economies. Canadian policy makers are widely tipped to increase interest rates on Wednesday, after the Bank of Canada hiked the nations interest rates two times during the later-half of last year.

Aside from the BOC interest rate decision, investors and traders will look to key CPI inflation data for the month of December, from the United Kingdom and the eurozone. As the trading week draws to a close, we get a snapshot of the Chinese economy, as fourth quarter GDP numbers are released. We also see market moving December employment and unemployment figures, coming out from the Australian economy.

Monday 15th January, Japanese CGPI

The Corporate Goods Price Index measures the change in the selling prices of goods purchased by Japanese corporations. The CGPI measures the change in the rate of inflation in Japan from the perspective of the manufacturer, and is correlated with consumer price inflation.

  • The USDJPY pair remains strongly bearish while trading below the 111.20 level, further losses towards 110.30 and 109.80 appear likely.

  • Should price-action move above the 111.20 level, further upside towards 111.45 and 111.77 remains possible.

Tuesday 16th January, United Kingdom CPI

The United Kingdom economy releases key CPI inflation figures for December on Tuesday, with most economists predicting that UK CPI will have increased by 0.4 percent on a month-on-month basis.

The Consumer Price Index measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.

  • The GBPUSD pair remains bullish while trading above the 1.3610 level, further upside towards 1.3755 and 1.3810 appears likely.

  • Should price-action decline below the 1.3610 level, sellers may target towards the 1.3567 and 1.3500 support zones.

Wednesday 17th January, BOC Interest Rate Decision

Bank of Canada governing council members come to a consensus on where to set the rates on Wednesday. The Bank of Canada are expected to raise interest rates by 0.25 percent, as the domestic economy continues to improve.

Traders watch interest rate changes closely, as short-term interest rates are the primary factor in a countries currency valuation.

  • The USDCAD pair remains bearish while trading below the 1.2560 level, further downside towards the 1.2380 and 1.2200 levels seems possible.

  • Should price-action move above the 1.2560 level, buyers may test towards the 1.2640 and 1.2710 resistance areas.

Thursday 18th January, Chinese Q4 GDP

Chinese GDP is expected to have increased by 1.6 percent during the fourth fiscal quarter, which is marginally lower than the 1.7 percent increase seen during the third fiscal quarter.

Gross Domestic Product measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity, and the primary indicator of the economy's health.

Friday 19th January, United Kingdom Retail Sales

Official data from the Office for National Statistics, is expected to show that UK Retail Sales slumped -0.6 percent during the month of December.

Retail Sales measure the change in the total value of inflation-adjusted sales at the retail level. It is the foremost indicator of consumer spending, which accounts for the majority of overall economic activity.

 

 

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