No great news from Trade deal – Eyes on ECB, Davos

As there was no great news following the long-awaited signing of the Trade deal investors eyes are on ECB, Davos meeting and a week packed with economic data.

Investor sentiment has gradually improved since the United States and China signed an initial trade deal last week. They now braced for major central bank meetings later in the week.

The Bank of Japan will announce its rate decision on Tuesday. The European Central Bank is gearing up for its first policy meeting of the year on Thursday. The ECB will launch its first strategy review since 2003 to rethink an inflation goal that has not been met for seven years.

The Davos World Economic Forum’s annual meeting begins Monday, drawing 3,000 of the world’s richest and most powerful people. The theme of the 50th meeting is “Stakeholders for a Cohesive and Sustainable World.”

Further, U.S. President Trump gets a platform to express his views on trade with EU, speaking at the Davos World Economic Forum.

The EUR/USD posted slight losses for a third consecutive week. The pair ended the week, falling to a low of 1.1086 in the Friday session which was its lowest level since December 26th.

GBP/USD showed limited movement last week. It has been a rough start to the year for GBP/USD, which is down close to 2%.

The AUD/USD for a third successive week and the pair closed below the 0.69 level for the first time since early December. It’s been a rough start to the New Year, as the Australian dollar is down over 2%.

The Dollar/yen for a second straight week. The pair performed higher than the symbolic 110 level for the first time since May.

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LQDFXperts – The week ahead – No great news from Trade deal – Eyes on ECB, Davos

A busy week packed with economic data and the European Central Bank’s first policy meeting of the year is in store. Investors will be keeping a close eye on ECB’s meeting which is set to bring the formal launch of a strategy review.

On Monday (20.01) the Bank of Japan will release its Rate decision. The BoJ has left its negative interest rate of 0.1% unchanged for several years. Given the recent weakness of the yen, it will likely keep rates unchanged for some time.
On Tuesday (21.01) focus shifts on UK jobs report. As tension is mounting toward the upcoming BOE decision on January 30, labor market figures for November may provide more insights.
On Wednesday (22.01) investors will focus on the Rate Decision of the Bank of Canada. Governor Poloz, who is stepping down in June, will likely leave rates unchanged and signal satisfaction with the Canadian economy.
On Thursday (23.01) all eyes are on the Eurozone rate decision which is due at 12:45, and President Christine Lagarde will meet the press at 13:30.
Friday (24.01) brings “flash PMIs” in many countries, including France and Germany and UK, – advance readings of purchasing managers’ business activity indexes. While the euro zone figures will be scrutinized to get a measure of economic recovery, British PMIs will grab more attention

Follow this week’s economic calendar.

PLEASE NOTE The information above is not investment advice.

Sources: Reuters, CNBC, FX street