Weekly Fiscal & Political Outlook
The week in view is likely to be calmer compared to the chaos and unpredictability that has characterized the market in recent weeks, as economic data remain extraordinarily thin. We’ll be expecting a few important even risk from the United States, but in the absence of any actions from the Federal Reserve Bank. In addition to this, China is having a week long Lunar New Year holiday that will see observance within Chinese communities across the globe. Today is also a public holiday in New Zealand, while Thursday holds same for Japan.
Trading will begin in earnest on Wednesday for the greenback as Fed Chair, Janet Yellen testifies before the House, while traders will also have their eyes on the Crude Oil Inventories data release. Janet Yellen is billed to continue her testimony before the house on Thursday, coupled with the release of Unemployment Claims Data. Lastly, Friday will usher in Retail Sales and the Preliminary UoM consumer Sentiment numbers.
Asides the Manufacturing Production data that is billed for Wednesday, event risk for the Sterling remains flat.
Friday’s German Preliminary GDP data is the only data release for the Euro this week.
Markets in China are down as they observe the Lunar New Year Holiday.
We anticipate the Governor of the Reserve Bank of Australia testimony before the House on Thursday, asides which the Australian dollar is flat on data releases.
Today is a public holiday in New Zealand. The week in view has no high-risk event.
The entire week will remain flat in terms of fundamental data for the JPY, coupled with a public holiday on Thursday.