Review of the main events of the Forex economic calendar for the next trading week (18.01.2021 – 24.01.2021)
Trading on key Forex news: next week we are expecting the publication of important macro statistics from Australia, China, US, Germany, Eurozone, Great Britain, Canada, New Zealand, as well as the results of the monetary policy meetings of the central banks of Japan, Eurozone, Canada, and China.
The statements of the head of the Fed Jerome Powell on maintaining low interest rates for a long period of time made last Thursday put pressure on the dollar, albeit only in the short term. Powell said it was too early to talk about a revision of the central bank’s soft policy, including a $120 billion a month bond buyback program. “The economy is far from our goals,” Powell explained.
Last Friday, the dollar resumed its growth, and the DXY dollar index rose by about 0.5% by the end of the week to the level of 90.70.
The dollar, in particular, is receiving support from the growing yields on US government bonds and from the sell-off on the US stock market. Gold and oil quotes also declined last week, and gold continued with the fall that began the previous week.
Investors continue to withdraw from defensive assets. But where are they investing the money since the market for risky assets is also showing a decline? Is it really the dollar? If so, then perhaps a turning point in the negative dynamics of the dollar is coming right now.
Powell tried to reassure investors, but how long will that last?
It is also possible that the fears of the continuing expansion of the coronavirus pandemic contribute to the strengthening of the dollar. In China, the growth in the number of new cases has reached a 10-month high, not to mention the difficult situation in the UK and Europe introducing new lockdowns.
Next week, financial market participants will pay attention to the publication of important macro statistics from Australia, China, US, Germany, Eurozone, Great Britain, Canada, New Zealand, as well as the results of monetary policy meetings of the central banks of Japan, Eurozone, Canada, and China.
Traders should pay attention to the publication of the following macro indicators:
*during the coming week, new events may be added to the calendar and / or some scheduled events may be canceled
Понедельник 18 Января
In the United States, banks and exchanges are closed for the Martin Luther King Jr. Day. Trading volumes during the American trading session will be low.
02:00 CNY China’s GDP for the 4th quarter
The National Bureau of Statistics of China will present data on GDP growth in the 4th quarter.
In the 2nd quarter, China’s GDP grew by +11.5% (+3.2% in annual terms), in the 3rd – by 2.7% (+4.9%, respectively), after a decrease of -6.8% (-9.8% in annual terms) in the 1st quarter.
China’s GDP is expected to grow by +3.2% (+6.1% in annual terms) in the 4th quarter of 2020.
China is the largest buyer of raw materials and a supplier of the widest range of finished goods to the world commodity market. According to some reports, China is already the first economy in the world, pushing the American economy to second place. Therefore, the publication of important macroeconomic indicators from China can have a strong impact on the entire financial market.
The relative decline in GDP may negatively affect the yuan quotes, as well as the quotes of commodity currencies and currencies of the Asia-Pacific region, since it may indicate a slowdown in the growth rate of the Chinese economy.
The growth of the indicator will have a positive…