Starting the Year Right: Financial Events of January 2016

With 2015 drawing to a close, many traders have already shifted their focus to next year. 2016 is expected to be a challenging year in the global financial markets, as diverging monetary policies, emerging market volatility and a resilient US dollar will pressure share prices and corporate earnings. To help traders prepare for the new-year, we’ve assembled a detailed breakdown of the major market-moving events for January.

Monday, January 5

The first Monday after the New Year will likely be an important one. Not only will investors weigh ISM US manufacturing PMI, they will also react to Chinese trade balance figures, which are scheduled for release on New Year’s Day.

Tuesday, January 6

In the wake of the European Central Bank’s (ECB) decision to expand monetary policy in December, investors will be closely monitoring Eurozone inflation data. The European Commission will produce December CPI on the first Tuesday after the New Year. Another weak reading could prompt speculation about additional stimulus in the months ahead.

Wednesday, January 6

The Federal Reserve will release the minutes of the December 15-16 FOMC policy meetings on January 6. With the Fed expected to raise interest rates in December, the minutes could provide clues about policymakers’ timetable for future rate hikes.

Friday, January 8

US December nonfarm payrolls, one of the biggest releases of the month, will be released one week after the New Year holiday. Jobs data are a key proxy for the health of the US economy, and will be closely monitored by the stock and currency markets.

Thursday, January 14

The first major central bank meeting of the year will be held by the Bank of England (BOE) on January 14. Although weak inflation has forced the BOE to delay its timetable for a rate hike until at least the middle of 2016,[1] the first meetings of the year will be closely followed by European markets.

Thursday, January 21

Seven weeks after cutting its deposit rate and expanding the duration of its quantitative easing program by six months, the ECB will issue another monetary policy statement. ECB President Mario Draghi assured the markets in December that the central bank is not limited in how it can deploy its monetary policy tools. Although the ECB is unlikely to ease policy further in January, it may outline other options it is considering.

Wednesday, January 27

The Federal Reserve will hold its first interest rate meeting of 2016 on January 27. The meeting is not expected to produce any shift in policy, provided the Fed raises interest rates in December. Nevertheless, the Fed statement and accompanying press conference are closely monitored by equities, precious metals and currency traders.

Thursday, January 28

The data deluge continues on January 28 with preliminary fourth quarter GDP figures for the UK. Britain’s economic growth slowed to 0.5 percent in the third quarter, stemming from a protracted slowdown in manufacturing and the biggest slowdown in construction in three years. Fourth quarter growth is likely to be spearheaded by holiday shopping, marking the twelfth consecutive quarter of expansion for the UK economy.[2]

Friday, January 29

The final market-moving data release of January takes place on the 29th when the Commerce Department reports on US fourth quarter GDP. The US economy is forecast to end the year on a strong note after a disappointing third quarter. Solid GDP figures will only reinforce expectations for further policy tightening by the Fed.

[1] Simon Lambert (November 19, 2015). “When will interest rates rise? ‘Mild’ deflation continues as economists suggest no move until late 2016.” This is Money UK.

[2] Julie Kollewe (October 27, 2015). “GDP growth in the UK slows more than expected to 0.5%.” The Guardian.

The post Starting the Year Right: Financial Events of January 2016 appeared first on Forex.Info.

Source:: Starting the Year Right: Financial Events of January 2016

About the Author
With over a decade of trading expertise and 100,000 fulfilled clients in 160 countries worldwide, easyMarkets will tick all your boxes whether you are a new or experienced trader, affiliate or introducing broker. [space height="20"] Trade 300+ markets including currencies, commodities, metals, vanilla options and indices from one place without the jargon, complicated offers and confusing terms! [space height="20"] Welcome to the exciting world of trading. Welcome to easyMarkets.

Leave a Reply