Monday 19-12-2016 Outlook

Welcome to the easyMarkets weekly outlook starting this Monday 19 December. We’ll be looking at the week’s key economic events on the financial calendar covering Monday to Thursday. Be sure to catch up with our Friday morning report that looks back at how the events played out and with a look at Friday’s events. This week’s action is coming out of Japan, New Zealand, the US and Canada.

Event: Japan rate decision

Date: Tuesday 20 December 2016 at 03:00 GMT

Markets affected: USD/YEN

Trending hashtags: #yen, #boj, #interestrate

Analysts are not expecting the Bank of Japan to make any changes to its monetary policy this month. Despite heavy losses for the Yen against the dollar when the Fed increased their interest rates last week, the BOJ commented that unless something drastic was to occur they might be maintaining their -0.1% rate. BOJ Governor, Haruhiko Kuroda noted that Japan’s fragile economy might be faced with weakening price momentum and that deflation is taking longer to overcome than originally expected. Currently the Bank is hoping to hit its inflation target in 2018.

Event: New Zealand GDP announcement

Date: Wednesday 21 December 2016 at 21:45 GMT

Markets affected: NZD/USD, AUD/NZD

Trending hashtags: #nzgdp, #nzd

With exports and domestic demand growing, New Zealand’s economy grew in Q2 by 0.9% which was only just below the 1.1% that analysts were predicting. Household demand in the second quarter rose 3.6% and exports experienced a stable 4% growth. Economists are optimistic for the Q3 results and are forecasting 0.8% a possible growth for the quarter and 3.7% for the year. If this holds true then many are not expecting the Reserve Bank of New Zealand to reduce interest rates further which currently sit at 1.75%.

Event: US Durable Goods Orders

Date: Thursday 22 December 2016 at 13:30 GMT

Markets affected: EUR/USD,

Trending hashtags: #durablegoods, #usd

Durable Goods Orders are orders received by manufacturers for products that have a 3-year shelf life or more. October saw a decent increase of 4.6% (adjusted), surpassing the markets expectation of a 3.3% rise. Most are attributing the rise due to growth in demand for commercial aircraft; though growth in long-lasting products was seen across the board for October. Durable Goods Orders (ex-transportation) will also be released and core orders are forecast to rise 0.2% for November.

Event: Canadian GDP data (MoM)

Date: Friday 23 December 2016 at 13:30 GMT

Markets affected: AUD/USD

Trending hashtags: #cad, #canadagdp

With energy prices back on track, the Canadian economy is expected to increase 1.1% for the year according to the Bank of Canada. The previous month showed an increase of 0.3% while consensus for this month’s growth is currently sitting at 0.1%. The BOC is optimistic for 2017, forecasting 2% growth for the economy.

http://www.tradingeconomics.com/japan/interest-rate

http://www.rbnz.govt.nz/monetary-policy/official-cash-rate-decisions

http://www.statcan.gc.ca/eng/nea/dates/index#niea

http://www.tradingeconomics.com/canada/calendar

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