With a flurry of economic data including; central bank meetings and policy decisions due in the US, UK and Japan, global markets will be busy.
However, despite the abundance of economic data to be released this coming week, markets could continue to be dictated by Trump-inspired headlines. Traders are focusing on any trade policy, deregulation and infrastructure spending hints given by the US President.
The euro zone will publish inflation figures for January on Tuesday. The forecast for the report is a 1.5% increase in consumer prices. ECB president Draghi downplayed the shift towards inflation in a recent conference. The president stated that the underlying inflationary pressures are ‘’subdued’’
On a similar note, the Bank of England will release its inflation report on Thursday. It is expected that the UK’s data will show an increase in inflation.
The US Non-Farm-Payrolls are due to be released on Friday. The expectation is that the growth of jobs will be approximately 171,000 for January. A positive employment report will support the argument for a rate hike, as it would be reflective of a growing economy.
3.Trump’s Policy Reforms
Donald Trump has made many executive decisions since becoming president and the political novice shows no signs of slowing down. Trump’s policy reforms and proposals have dictated markets and should continue take hold of market fluctuations.
Some of the main changes have concerned; immigration, domestic and global health care, international trade, government hire freezing, housing policy, and environment.
4.Interest Rate Decisions
The US Federal Reserve will announce its interest rate decision on Wednesday. The Fed are not expected to raise interest rates. Recent economic data shows that the US economy grew 1.6% in 2016, the weakest growth in five years. The forecast for the next interest rate hike is not until the second quarter of this year.
The bank of England will release its interest rate decision on Thursday. The forecast is that interest rates will remain unchanged. Due to the uncertainties surrounding Brexit, the BOE are expected to remain neutral on whether they will raise rates in the near future.
The bank of Japan will announce its interest rate decision on Tuesday. Forecasts show that it is likely that the BOJ will leave interest rates unchanged. The economy has recently shown some signs of recovery, following years of deflation.