{"id":101456,"date":"2017-01-29T11:35:53","date_gmt":"2017-01-29T16:35:53","guid":{"rendered":"http:\/\/countingpips.com\/?p=101456"},"modified":"2017-01-29T11:35:53","modified_gmt":"2017-01-29T16:35:53","slug":"week-ahead-central-banks-data-back-in-focus","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/01\/week-ahead-central-banks-data-back-in-focus\/","title":{"rendered":"Week Ahead: Central banks & data back in focus"},"content":{"rendered":"
January 29, 2017<\/div>
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Article by ForexTime<\/a><\/p>\n

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Although Donald Trump policies will remain to be the key moving indicators for financial markets in the days and weeks to come, central banks and economic data will attract some attention the week ahead.<\/p>\n

The Fed<\/strong><\/p>\n

In December, the Federal Reserve signaled that they may rise rates three times in 2017, however, it looks certain that Wednesday\u2019s meeting won\u2019t be one of the three.<\/p>\n

The U.S. economy grew at slowest pace in five years in 2016 by only 1.6%, but another favored indicator for the Federal Reserve, the final domestic sales number which excludes inventories and trade expanded by 2.5% in Q4 compared with 2.1% in the previous quarter.<\/p>\n

On the contrary, consumer prices rose in 2016 at the fastest pace in five years to break above 2.0%, suggesting that the Fed\u2019s favored PCE data will edge closer to the 2% targeted inflation.<\/p>\n

However, the biggest unknown factor remains to be fiscal policies, and since there\u2019s no clear roadmap yet, the Fed will take no action and just like us, keep monitoring Trump\u2019s announcements.<\/p>\n

Since Wednesday\u2019s interest rate decision won\u2019t be accompanied by a press conference or economic and rate projections, it\u2019s going to be all about the released statement. A hawkish tone that opens the door for a rate hike in the following meeting will likely give another push for the dollar given that only 25% is being priced in for a rate increase in March.<\/p>\n

Other Central Banks<\/strong><\/p>\n

Sterling traders will also be interested in Bank of England\u2019s Super Thursday, when the central bank announces interest rate decision along with its quarterly inflation report. Just like the Fed, the BoE isn\u2019t likely to take any actions on Thursday leaving interest rates and quantitative easing measures unchanged. But given that the pound has dropped by more than 15% against the dollar and around 12% on trade weighted basis since the Brexit vote, inflation expectations will probably push the central bank towards a more hawkish tone, giving a reason for traders to buy the pound on the dips.<\/p>\n

The least interesting central bank meeting is going to be Bank of Japan. Although we believe that the next step is likely to be tightening monetary policy, I think it\u2019s still very early to announce any future tightening measures. Thus, the Yen will likely take its cue from risk appetite\/aversion in financial markets.<\/p>\n

Friday\u2019s NFP<\/strong><\/p>\n

On the data front, the U.S. is expected to have added 171K non-farm payroll jobs in January, up from 156K in December. Meanwhile, average hourly earnings are forecasted to rise by 0.3% compared to 0.4% in the previous month. If the data doesn\u2019t deviate a lot for expectations the impact on the dollar will be limited, and investors\u2019 attention will turn back to the White House.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

Disclaimer: <\/strong>The content in this article comprises personal opinions and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/em><\/p>\n

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Article by ForexTime Although Donald Trump policies will remain to be the key moving indicators for financial markets in the days and weeks to come, central banks and economic data will attract some attention the week ahead. The Fed In December, the Federal Reserve signaled that they may rise rates three times in 2017, however, […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-101456","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/101456","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=101456"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/101456\/revisions"}],"predecessor-version":[{"id":101466,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/101456\/revisions\/101466"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=101456"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=101456"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=101456"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}