PA Market Report is offering every bit of knowledge available and an overall update of the impending occasions that may cause an effect in the forex market. Let’s discover what occurred last week?

Jan 18: The week began with the US President’s plan to cancel Keystone XL pipeline permit VIA executive action on his 1st day at the office. The story was somehow different in the UK as House prices started to drop. As a consequence of it, it is predicted that 100,00 sales will miss the stamp duty deadline. As we have said about the turmoil in Italy’s parliament last week, Italy’s senator Renzi’s ministers eventually resigned over ESM. The day ended with a grim for the Germans as their Finance Minister Scholz said the extension of coronavirus lockdown is required.

Jan 19: Biden plays his cards against President Trump’s order to lift covid related travel restrictions on visitors from the UK, EU, Brazil on Jan 26. A ray of optimism shines on the horizon for China as their state planner believes China has the ability and conditions to consolidate economic recovery this year. Italy’s Premier is closing in on the majority as Senate support grows. The former chair of the Federal Bureau of Reserve says they are prepared to use a full array of tools to challenge China’s abusive, unfair and illegal practices. The day ended with another blow for the Germans as they extended lockdown till 14 Feb.

Jan 20: ECB is said to be pursuing the strategy of yield spread control as it is buying bonds to limit the differences between yields for the strongest & weakest economies in the eurozone, according to off’s familiar with the matter, with 1 person saying the Bank has specific ideas on what spreads are appropriate. The BOC continues quantitative easing and holds the current level of policy rate until the inflation objective is achieved. The Monetary Policy Report released later on that day where BOC held rates of 0.25% as expected. One thing to notice here is that earlier than anticipated vaccine rollout means recuperation in the Canadian economy is now more secure, and the medium-term growth forecast to be stronger. BoC governor Macklem said that the bank determined that considerable stimulus in place was appropriate. 

Jan 21: Seasonally adjusted employment increased by 50,000 people between November and December 2020 according to the Australian Bureau of Statistics (ABS). POBC sets Yuan Midpoint at 6.4696/USD VS the last close at 6.4630. EU The Governing Council decided to reconfirm its very accommodative monetary policy stance. First, the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25%, and -0.50% respectively. ECB’s President Lagarde said that an ample degree of monetary stimulus is essential and they will monitor developments in the exchange rate. BoC governor Macklem affirmed that Canada won’t need as much QE overtime under the base case. ECB president Lagarde speaks up again later that day and said that an ambitious and coordinated fiscal stance is critical. Moreover, she also stated that Fiscal measures should be targeted and the temporary also, EU aid package must become operational without delay. 

Jan 22: Higher prices for domestic accommodation, building a new home, and used cars led to a 0.5 percent lift in the consumer’s price index in the December 2020 quarter, keeping annual inflation at 1.4 percent, Stats NZ said on 22 Jan. On the other hand, the retail sales volume of Great Britain increased by 0.3% compared to November 2020, resulting in an increase of 2.7% when compared with February’s pre-lockdown level. Also, French private sector activities boost during January amid restricted Covid-19 curfews. But bad news again for the German economy as German PMI slips to a seven-month low in January. although overall economic output in the country continued to see support from growth in the manufacturing sector and rising goods export. The day ended with the steepest fall in UK private sector output since last May as the third national lockdown hit the service economy.

Upcoming News Events: 

Jan 26: 

CB consumer Confidence

Jan 27: 

CPI q/q

Trimmed Mean CPI q/q

Jan 27:

FOMC Statement

Federal Funds Rate

FOMC Press Conference

Advance GDP q/q

Advance GDP Price Index q/q

Unemployment Claims

CB Leading Index m/m

Jan 29: 

KOF Economic barometer

GDP m/m