12th Dec to 16th Dec 2016
China’s Foreign Direct Investment report will be coming out later the day. This will be an important indicator in terms on foreign investor’s confidence on Chinese enterprises. Anything less than expected will have a negative impact on CNY. Also Japan’s tertiary industry index will be released by the Ministry of Economy. Being an indicator of the domestic service sector in Japan, the rate of exports will determine how well the tertiary sector is doing. As the Japanese economy relies upon its exports, this event is expected to generate low volatility for the JPY. The U.S Monthly Budget Statement will be released by the Financial Management Service summarizing the financial activities of its federal entities such as disbursing officers and Federal Reserve banks. It all comes down to receipts vs budgetary outlays will be indicative of US fiscal deficit. Tuesday is all about inflation as higher prices ensures higher spending, which further indicates more disposable income in the hands of the people. Early morning, Australia’s quarterly Housing Price Index report will give an idea regarding the changes in housing prices of major cities in Australia. Given the high unemployment rate, it remain to be seen if this quarter’s report will have any kind of positive pressure. Consumer price index for and Harmonized Index of Consumer Prices report from Germany will give an indication on rate of inflation, liquidity on consumer purchase & consumption in Germany. Although a positive rate would definitely give an edge to Germany’s economy, industry experts predict a less-than-expected reading. Finally, UK’S monthly consumer price index may drag down the purchasing power of GBP with rising rates in inflation. Retail prices are expected to go up, however this could have a positive impact on the GBP rate. Day will start with Industrial production report from Euro zone which shows the volume of production of Industries such as factories and manufacturing. The U.S Federal Reserve’s monetary policy meeting of the year, is expected to cause considerable shift in the foreign exchange market. However, things could get extremely volatile during the FOMC press conference. The statements made during the Q&A session, may cause a short term trend in the foreign currency market. In the Federal Reserve Rate meeting in November, policy officials decided to leave rates unchanged strongly hinted that a rate hike is likely in December. In Janet Yellen’s first public speech since the US Election and Trump Elected as President of USA. Janet Yellen said interest rates could rise “relatively soon since Trump’s victory did not affect the outlook for US growth, suggesting the Fed will make the move in December. Australia’s Unemployment rate will quantify the number of unemployed workers, as opposed to its total civilian labor force. If the rate does hike, this would indicate a lack of expansion within the Australian labor market. As a result an increase in unemployment rate leads to a weakened Australian economy. Following Next, The Swiss National Bank’s interest rate decision will focus on price stability while maintaining the country’s rate of economic development. Considerable volatility is expected for CHF, especially during the press conference that will follow after. The minutes of the BoE MPC meetings will be published alongside with the committee decision. The minutes give a full account of the policy discussion, including differences of view. They also record the votes of the individual members of the Committee. Generally speaking, if the BoE is hawkish regarding the inflationary outlook for the economy, then the market sees a higher possibility of a rate increase which will affect the GBP positively. Mid evening will be filled with reports from US. Firstly, jobless claims which measure the number of individuals who are unemployed and are currently receiving unemployment benefits will take place. Next up will be Initial jobless claims, which is a measure of the number of people filing first-time claims for state unemployment insurance of which both reports presents the strength in the US labor market. The day will end with reports on consumer price index for several fields from USA. These reports should provide a clear indication to measure inflation and changes in purchasing trends in USA. The day will start with reports from Euro Zone. First up will be Consumer Price Index which is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services excluding the volatile components like food, energy, alcohol and tobacco. The week will end with Building Permits and Housing Starts from USA, Building Permits reports shows the number of permits for new construction projects and it implies the movement of corporate investments (US economic development). Housing starts report tracks how many new single-family homes or buildings were constructed. Significantly indicating the growth of Housing Markets of USA.Monday
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