The attention of financial markets on forex news this week will focus on the results of the most important central banks in the world that will be held in the United States, Britain and Japan, and the decisions that will result from it. On the other hand, investors are also waiting for the release of many forex news and important economic data in the United States, most notably The monthly jobs report in the non-agricultural sector on which the Reserve Bank depends in its decision to raise interest rates, and in the euro area, important data on inflation rates will be revealed during the month of January.
The following are the most important forex news and economic events that have a significant impact on the movements of the financial markets this week:
1. Awaiting the Federal Reserve's meeting.
The members of the Federal Reserve are scheduled to hold its first regular meeting for this year next Wednesday, which will extend until Thursday, and expectations are met that the bank will not take any new decisions regarding its monetary policy, but investors are awaiting the final statement of the meeting for any indications about the future situation of raising interest rates. during the coming period.
It is worth noting that during the last meeting of the bank, which was held in mid-December last, the bank indicated that it would raise interest rates during 2017, at least three times, by 25 basis points each time, but market expectations indicate the possibility of raising them only twice.
2. The British Central Bank meeting.
from news Forex It is important for the British Central Bank to meet to discuss the appropriate monetary policy for the British economy during the coming period, and its decision regarding interest rates will be announced at 07:00 ET, amid patches that indicate keeping monetary policy unchanged, and the Bank will also issue its report on the rate quarterly inflation.
On the other hand, the British economy will release this week a number of important data related to the industrial sector, the construction sector and the service sector.
The Bank of Japan will issue its monetary policy decision next Tuesday, and it will be followed by a press conference by Bank of Japan President Haruhiko Kuroda to give the reasons for the decision taken.
According to a Reuters poll conducted last Friday, a large proportion of expectations indicate that the bank will keep its monetary policy at its current levels unchanged at -0.1%, in addition to maintaining the 10-year government bond yields at 0% and fixing the size of the stimulus program at 80 trillion yen. These forecasts are based on the improvement in Japan's economic situation.
4. The US economy releases monthly data for jobs in the non-agricultural sector.
One of the most important forex news that the markets are anticipating is, at 08:30 ET on Friday, the US Department of Labor will publish its monthly non-agricultural jobs report.
The majority of expectations show that American jobs will witness a growth of about 171 thousand in January compared to December, which added about 156 thousand jobs. As for the unemployment rate, it is expected to remain stable at 4.7%, and on average hourly earnings, expectations indicate Its rise by 0.3% compared to the previous reading, which recorded a rise by 0.4%.
The report's positivity will be a good indication of the extent of improvement in economic growth, and therefore it will be a strong motivation for the bank to raise interest rates in the near term, but if the data is weak, this will reduce the chances of tightening monetary policy.
On the other hand, the United States will reveal, during this week, a large number of important data represented in the personal income rate, spending rate and labor costs, in addition to data on consumer confidence in the economy, and other data for the manufacturing and service sectors, weekly jobless claims, unit labor costs and factory orders.
Despite these many important data, financial markets and businessmen will turn their attention to US President Donald Trump's statements to learn more about his implementation of his promised policy of expanding government spending rates to restructure infrastructure, reduce taxes and his new trade policies.
On the other hand, companies continue to release their earnings reports for the fourth quarter of last year, as Apple Technology Company will announce its profits, Amazon and Facebook, in addition to pharmaceutical companies such as Merck and Fierce.
5. The Eurozone releases its report on inflation rates for the month of January.
At 10:00 ET on Tuesday, the euro zone will release its inflation report, represented by the consumer price index, and the index is expected to rise to 1.5%, approaching the European Central Bank’s target of 2%, compared to December, which was recorded Up by 1.1%.
On the other hand, the European economy will release next Tuesday its report on preliminary data on growth rates during the fourth quarter of last year, and the European Commission will reveal on Wednesday its economic forecast for the region.