For the Dollar:
It’s a busy week ahead on the economic data front.
In the 1st half of the week, November retail sales and December private sector PMIs are due out, along with industrial production and NY Empire State Manufacturing figures.
Expect retail sales and service sector PMIs to be the key drivers on Tuesday and Wednesday.
The focus will then shift to Philly FED Manufacturing PMI and weekly jobless claims figures on Thursday.
Expect the initial jobless claims figures to garner the greatest interest in the day.
On the monetary policy front, the FED is also in action on Wednesday.
While the FED is expected to leave interest rates unchanged, an expansion to the bond purchasing program could be on the cards.
Also of interest, however, will be the FED’s interest rate projections and economic projections.
The Dollar Spot Index ended the week up by 0.30% to 90.976.
For the EUR:
It’s a busy week ahead on the economic data front.
In the 1st half of the week, October industrial production figures for the Eurozone and finalized inflation figures from Italy and France are due out.
Expect industrial production figures to have the greatest influence.
Mid-week, the focus will shift to prelim December private sector PMI numbers for France, Germany, and the Eurozone.
Expect plenty of influence from the PMI numbers, with any deterioration likely to weigh on risk sentiment.
In the 2nd half of the week, German IFO Business Climate index figures for December will also influence on Friday.
Away from the economic calendar, chatter from Capitol Hill, Brexit, and COVID-19 vaccination news will also provide direction.
The EUR ended the week up by 0.07% to $1.2112.
For the Pound:
It’s a busy week ahead on the economic calendar.
In the 1st half of the week, claimant count, wage growth, employment change, and unemployment figures are in focus.
Expect claimant counts and the unemployment rate to be the key drivers.
Mid-week, November inflation figures will also garner interest ahead of a busy 2nd half of the week.
November retail sales figures are due out, which will draw plenty of interest.
The main event of the week, however, is the BoE monetary policy decision on Thursday.
There has been the talk of negative rates, the markets will get an idea of what to expect, particularly with some degree of clarity on Brexit by Thursday…
While the markets are expecting the BoE to leave rates unchanged, forward guidance will, therefore, be key.
The Pound ended the week down by 1.61% to $1.3224.
For the Loonie:
It’s a relatively busy week ahead on the economic calendar.
On Wednesday, November inflation figures are due out ahead of October retail sales figures on Friday.
Other stats in the week include housing start and manufacturing and wholesale sales figures. We would expect these numbers to have a muted impact on the Loonie, however.
Away from the economic calendar, expect FED monetary policy, U.S stimulus talks, and COVID-19 news to also…
Go to the news source: The Week Ahead – Brexit, COVID-19, Monetary Policy, Economic Data, and Capitol H…
