Weekly Analysis ( 06 Feb – 10 Feb 2023 )
06 Feb– 10 Feb 2023 |
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Time(GMT) |
CRY |
Event |
|
Monday |
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09:30 |
GBP |
UK Construction PMI |
|
18:00 |
EUR |
ECB President Lagarde Speaks |
|
Tuesday |
|||
03:30 |
AUD |
RBA Interest Rate Decision |
|
17:00 |
USD |
EIA Energy Outlook |
|
17:40 |
USD |
Fed Chair Powell Speaks |
|
Wednesday |
|||
15:30 |
USD |
Crude Oil Inventories |
|
Thursday |
|||
07:00 |
EUR |
German CPI |
|
13:30 |
USD |
US Initial Jobless Claims |
|
Friday |
|||
07:00 |
GBP |
UK GDP |
|
07:00 |
GBP |
UK Manufacturing Production |
|
10:00 |
EUR |
EU Leaders Summit |
|
WEEKLY ECONOMIC UPDATE: Slow Week Ahead with Key Developments Although it's a quiet week on the economic calendar, there are several important events for markets to keep an eye on. First, Fed Chair Jerome Powell will be making an appearance on Tuesday, following the strong jobs report last Friday that showed the addition of 517.000 jobs in January, surpassing expectations. Investors are paying attention to Powell's remarks and how they may impact the Fed's plans for rate hikes and its stance on inflation. Other Fed officials, including John Williams, Neel Kashkari, and Raphael Bostic, will also be speaking this week. Next, the Reserve Bank of Australia is expected to hike rates due to a rise in inflation to a 33-year high in the last quarter. The ECB, who raised rates by 50 basis points last week and hinted at further increases in March, will also be closely watched. ECB President Christine Lagarde explained the rate hike was due to elevated core inflation of Germany is set to release its January inflation data on Thursday, which is expected to continue to rise. The U.K. will also release its GDP data on Friday, which is predicted to show no growth in the fourth quarter, but narrowly avoiding a recession. The Bank of England, who raised rates for the tenth time last week, stated that Britain is still facing a recession this year, but it is likely to be milder than previously thought due to lower energy prices and weakened market interest rate expectations. The price of gold experienced a sharp decline of almost 3% on last Friday's trading due to the release of strong U.S. employment data for the month of January. The report prompted traders to take profits from their investments in the precious metal, which had seen a sustained rise in value. The report showed a much stronger than expected growth in non-farm payrolls, which put pressure on the Federal Reserve's efforts to slow down the labor market and curb rising wages in order to reach its inflation target. This, in turn, led to an increase in the value of the U.S. Dollar Index and yields on the U.S. 10-year Treasury note. |