After last week heavy
economic calendar, this week economic news looks more soft than previous week. We should expect the current
sentiment, after very weak jobs numbers to continue in the week ahead, so don't expect big changes in the current market trends.
On 11th Feb he new Fed Chairman Janet Yellen will deliver his first monetary policy speech in front of Congress. I think she will continue with the current Fed's rhetoric that QE program worked and that any further reduction in the bond buying program will be "data depending". The only think we should watch is how she will responde to the fact that unemployment rate is still above Fed target and also the inflation rate is below target. Other things we should pay attention is to the Retail Sales which are about to decrease based on the recent survey.
UK economy continue to recover in January and as per market expectation UK is set to have the fastest growth rate among developed countries. The only notable event for this week is the Inflation report. Currently the inflation rate is down to almost 2% which is in line with BOE's target. According to BOE's forward guidance interest rates will raise only if unemployment rate falls below 7%.
This week we have the
Unemployment rate and the
Employment Change. According to recent survey the unemployment rate is set to remain at 5.8% but there are good news as Australia is expected to add 15K jobs in previous month. Short term sentiment remains positive after last week retail figures but we should be careful as the RBA's governor is used to talk down aussie by
verbal intervention
I'm only highlighting the big events for the week ahead as this can change the trend if they surprise the market and the volatility is very high during the release.
Best Regards,
Daytrader21
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