Tuesday
The weekly economic calendar begins with Tokyo Inflation. The forecast is 2.1% from 2.3% previously. These figures could have a positive impact on the Japanese yen.
Wednesday
As per the economic calendar China New loans are scheduled to be released on Wednesday. The Chinese yuan may be strengthened by the data as it also anticipates a slightly elevated 370 billion versus 1.090 billion.
Market participants will also be watching closely as BoE Governor Andrew Bailey and several other policymakers are due to testify to parliament on financial stability on the same day.
Thursday
On the US macro front, the main focus will be on the inflation numbers that will be published on Thursday. investors are watching closely for clues about possible interest rate developments
December inflation numbers could either increase expectations for changes in March or push them to later in the year, with expectations for an increase higher at 3.2% compared to 3.1%.
For core inflation, the case for tapering is harder to make because it is higher at 4%, still double the Fed’s 2% inflation target. The monthly data is expected to be 0.2%, slightly down from 0.3% previously.
On the same day, applications for unemployment benefits are published. The data is forecast at 211k from 202k previously, which could weigh on the dollar.
Friday
The important information as per the weekly economic calendar will release on Friday, when China publishes the Consumer Price Index (CPI) figures. The CPI index is expected to be -0.4% compared to the previous -0.5%. while PPI y/y is released at the same time, the forecast is -2.6% from -3.0% previously.
UK releases, GDP m/m numbers. An increase of 0.2% is expected, while a decrease of 0.3% is expected. figures could have a positive effect on the value of the pound.
Data on Friday, showing a rebound in Britain’s services sector in December, showed the economy may be narrowly avoiding recession as businesses and households weather the storm of high inflation and borrowing costs at 15-year highs.
The Bank of England faces demands from business leaders worried about the economy to cut interest rates. Investors will get their first tax cut in May.
From the US front, The December US CorePPI m/m and PPI m/m report is due to release. Economists expect more moderate growth compared to last month’s reading, which is still consumer protection. Core PPI should be slightly higher at 0.2% from 0.0% previously, while PPI m/m rises from 0.0% to 0.1%.
From the domestic front, India consumer price index and Industrial production numbers due to release. Both numbers could have significant impact on the Rupee.
Commodity Samachar
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