PA Market Report is giving information associated with an overall update of the approaching occasions which will cause a sway within the forex market. Let’s discover what occurred last week first, shall we?
Jan: 25: The week began with the news of a border clash between India and China. With injuries on both sides, the clash occurred again in a disputed border as per the Indian Media. UK is also paralyzed as it faced 3-month ‘halfway house’ lockdown after Easter as over-50s wait for 2nd vaccine. Bank of Japan Governor Haruhiko Kuroda shows optimism as he expects Japan’s economy to recover to the level before pandemic by the end of Fiscal 2021 or in the early Fiscal 2022. Later on that day, The headline German IFO Business Climate Index dropped sharply to 90.1 in January versus last month’s 92.2, missing the consensus estimates of 91.8 by a big margin as a consequence of it, EUR/USD dropped towards 1.2150. After weeks of political turmoil, Italy’s PM Conte is likely to resign. In US, the newly elected president, Joe Biden prepared to sign an executive order strengthening provisions of “Buy American”. Here, The Buy American Act is intended for companies who wish to obtain federal government contracts. … Businesses wishing to achieve compliance must ensure that the cost of domestic materials used in their end product exceeds the cost of any non-domestic materials.
Jan 26: labor market overview got released earlier that day which indicated, since February 2020, the number of payroll employees has fallen by 828,000; however, the larger falls were seen at the start of the coronavirus (COVID-19) pandemic. After weeks of convoluted dealings, Italy’s PM Conte confirms to resign. British finance minister Rishi Sunak said on Tuesday that they will review additional COVID-19 support measures in the March budget, as reported by Reuters. The Conference Board Consumer Confidence Index® improved moderately in January, after decreasing in December. ECB said to study impact of ECB vs Fed policy on exchange rate.
Jan 27: As 2021 begins, consumer confidence in Germany is suffering under the strict lockdown. Propensity to buy is in freefall, while both economic and income expectations have registered moderate declines. President of Dutch Central Bank, Kiass Knot said, ECB Has Tools To Counter Euro Appreciation If Needed. UK police were dealing with an ongoing incident where Astrazeneca vaccine is produced, as The BBC understands that a bomb disposal unit has been called to deal with a suspicious package. Although there are no reports of any injuries. The Consumer Price Index (CPI) of Australia rose 0.9% this quarter. Over the twelve months to the December 2020 quarter the CPI rose 0.9%. The ended with ECB officials’ news as they said to see markets underestimating rate-cut odds.
Jan 28: The Federal Reserve is committed to using its full range of tools to support the U.S. economy in this challenging time, thereby promoting its maximum employment and price stability goals. Chair of the Federal Reserve, Jerome Powell said that “ We are a long way from a full recovery. Moreover, he said that,
oming months’ rise in inflation will be transient
-We will be patient and not react when we see modest bumps in inflation.
-Very unlikely that we’ll see troubling inflation
-Not going to adopt a formula on inflation
Export price index of Australia rose 5.5% this quarter and 0.3% through the year. Import price index fell 1.0% this quarter and 7.3% through the year. The Australian dollar appreciated against the United States dollar. The exchange rate had a downward effect on export and import prices this quarter. Real gross domestic product (GDP) increased at an annual rate of 4.0 percent in the fourth quarter of 2020 (table 1), according to the “advance” estimate released by the Bureau of Economic Analysis. “The US LEI’s slowing pace of increase in December suggests that US economic growth continues to moderate in the first quarter of 2021. Improvements in the US LEI were very broad-based among the leading indicators, except for rising initial claims for unemployment insurance and a mixed consumer outlook on business and economic conditions,”
Jan 28: January 28 was filled with major news. Good news for Japanese People as the EU cut Japan from the list of countries without travel restrictions.
Jan:29: People’s Bank of China Fixes Yuan Midpoint Against USD At 6.4709 (est 6.4657; prev 6.4545). The gross domestic product (GDP) in the fourth quarter of 2020 was almost unchanged compared with the third quarter of 2020 after adjustment for price, seasonal and calendar variations. After the historic 9.7% slump of the gross domestic product in the second quarter of 2020, the German economy was recovering in the summer of the year (+8.5% in the third quarter). In the fourth quarter, however, the recovery process slowed due to the second coronavirus wave and another lockdown imposed at the end of the year. Johnson & Johnson said Friday that its one-dose coronavirus vaccine was 72% effective in protecting against Covid-19 in the United States. The vaccine, however, was less potent in other regions, it said.
A ray of optimism shines for Canada as the Real gross domestic product (GDP) grew 0.7% in November, following a 0.4% increase in October. This seventh consecutive monthly gain continued to offset the drops in March and April in Canadian economic activity, which were the steepest on record. Even hotter news for Italy as Two days after Italy’s populist government collapsed, the center-left Democratic Party (PD) leader has told the president he will try to reach a deal with the populist Five Star party.
UPCOMING EVENTS OF THIS WEEK:
FEBRUARY 1:
- Final Manufacturing PMI
- Manufacturing PMI
- ISM Manufacturing PMI
- RBA Rate Statement
- Cash Rate
FEBRUARY 2:
- Employment Change q/q
- Unemployment Rate
- RBA Gov Lowe Speaks
FEBRUARY 3:
- Final Services PMI
- ADP Non-Farm Employment Change
- ISM Services PMI
FEBRUARY 4:
- Asset Purchase Facility
- BOE Monetary Policy Report
- MPC Asset Purchase Facility Votes
- MPC Official Bank Rate Votes
- Monetary Policy Summary
- Official Bank Rate
- Unemployment Claims
- RBA Gov Lowe Speaks
FEBRUARY 5:
- RBA Monetary Policy Statement
- Employment Change
- Unemployment Rate
- BOE Gov Bailey Speaks
- Average Hourly Earnings m/m
- Non-Farm Employment Change
- Unemployment Rate
- Ivey PMI
