Following Central Bank downward revisions to growth forecasts last week. China’s return from a week off was watched closely as Trade talks. with the U.S remain the main area of focus for the markets.
Initial progress in trade talks and a willingness by China. to make early concessions has provided some early support. as trade talks resume this week. Trump’s comments last week. which plagued the markets, will likely see the markets look to the U.S to delay .the planned roll-out of fresh tariffs, scheduled for 1st March.
There are no material stats scheduled for release. what’s a particularly quiet first half of the week on the data front. The markets will need to wait for Eurozone industrial production figures due out on Wednesday. which is not expected to be too EUR friendly.
Outside the numbers, expect market sentiment towards this week’s U.S – China. trade talks and risk appetite in general to provide direction.
It’s a big day on the economic data front. Key stats through the day include 4th quarter GDP numbers. December’s industrial and manufacturing production figures, and December trade data. We will expect the focus to be on the manufacturing production and GDP numbers.
Following BoE Governor’s comments on monetary policy. and warning to the markets on the policy front last week. positive data would give the Pound a much-needed boost.
While the numbers will have an influence. Brexit chatter from parliament will remain the key driver. The possibility of support from the Labour Party is good news for the British PM. though the markets will be looking for a plausible deal. rather than just a willingness for both sides to explore alternative options.
There are no material stats scheduled for release. For the Greenback and risk sentiment in general. the markets will be looking toward both Capitol Hill and the Oval Office.
While trade war chatter will certainly be a key driver. the threat of yet another partial government shutdown returns. with temporary funding expiring on Friday.
For the Loonie
Economic data is limited to December’s trade data. We can expect the Loonie to be particularly sensitive to today’s trade figures. Any weakness in the numbers. and the Loonie could be facing the prospects of C$1.34 levels against the U.S Dollar.
(Note- Above all information are taken from various sources like CNBC, Bloomberg. Alice Blue Commodity are not responsible for any miss information)