Review of the main events of the Forex economic calendar for the next trading week (25.01.2021 – 31.01.2021)
Trading on key Forex news: next week we are expecting the publication of important macro statistics from the UK, Australia, US, Germany, as well as the results of the Fed meeting on monetary policy issues.
The dollar dropped last week and the major American stock indexes finished it with a decent gain despite the decline at the end of the week. The NASDAQ100 index rose by 4.5% last week, and S&P 500 – by 2%.
Investors are generally optimistic and stocks are looking for further gains, given the position of the world’s largest central banks, including the Fed and the US government, to further support the economy amid the ongoing coronavirus pandemic. Expectations of a successful vaccination and an early victory over the virus also help maintain investor optimism and put pressure on a safe dollar.
Market participants also suggest that in the near future, the White House may announce new additional measures after the adoption of the $1.9 trillion bailout program.
Next week, financial market participants will pay attention to the publication of important macro statistics from the UK, Australia, US, Germany, however, their focus will be on the Fed meeting and the publication of its decision on rates.
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
Monday, January 25
23:50 JPY Bank of Japan Monetary Policy Committee Meeting
As a result of the meeting last week, the Bank of Japan decided to keep the key interest rate at -0.1%. The target level of yield on 10-year government bonds was also left unchanged at zero. The Central Bank also decided to extend the financing program for one year. “It is still too early to discuss winding down the massive monetary stimulus program,” said the Bank of Japan Governor Haruhiko Kuroda during a press conference that followed, adding traditionally that the bank’s management “would not hesitate to soften policy again if necessary.” At this meeting, the Monetary Policy Committee of the Bank of Japan will once again summarize the results of the last week’s meeting of the Bank, analyze the economic situation in Japan and give indications on possible further prospects for the Bank of Japan’s financial policy. If the tone of the minutes of the meeting indicates the firmness of the intentions of the Bank of Japan regarding monetary policy in the country, it will negatively affect the Japanese stock market and strengthen the yen. Conversely, mild rhetoric about the bank’s monetary policy prospects will help weaken the yen and boost the Japanese stock market.
Tuesday, January 26
07:00 GBP Report on the average wages of British citizens for the last 3 months. Unemployment rate
On a monthly basis, the UK Office for National Statistics (ONS) publishes a report on the average wages covering the last 3 months, with and without bonuses.
This report is a key short-term indicator of the dynamics of changes in the level of wages of employees in the UK. Earnings growth is positive for the GBP, while a low value is negative. Forecast: January report suggests that average wages with bonuses increased over the last calculated 3 months (September-November) by +2.8% (against +2.7%, +1.3%, +0.1% , -1.0%, -1.2%, -0.3%, +1.0%, +2.4%, +2.8%, +3.1%, +2.9%, +3.2%, +3.2% in previous periods); without bonuses – increased by +2.6% (against +2.8%, +1.9%, +0.9%, +0.2%, -0.2%,…