ECB President Mario Draghi will come to Parliament on Monday 1 February to discuss monetary policy at the Strasbourg plenary session. RBA Interest Rate Decision will be announced on Tuesday by the Reserve Bank of Australia. Bank of Japan Governor Haruhiko Kuroda will hold a press conference about monetary policies in Tokyo on Wednesday. Bank of England governor Mark Carney may be forced to cut interest rates on Thursday, after the CBI warned that the UK economy is running out of steam. Friday, February 5th: US Employment Report for January. The consensus is for an increase of 188,000 non-farm payroll jobs added in January, down from the 292,000 non-farm payroll jobs added in December.
Four trading weeks of the New Year are now officially in the books, and as much as gold may feel lackluster to many of the traders. Oil prices rallied for the fourth straight session on Friday, amid speculation OPEC and non-OPEC producers may be edging closer to a deal to cut production in an effort to tackle one of the biggest supply gluts in decades. We are tactically bullish on EUR despite the ECB essentially preannouncing further easing measures in March. AUDUSD is likely to go bullish. USDJPY risks have clearly become skewed to the upside, but we do not expect the cross to test last year high.
In a surprise move, the BoJ cut to -0.1% the rate applied to a portion of the Japanese banks current accounts. At a time of jittery markets and uncertain prospects around the world, the U.S. and Britain have still managed to end the year posting the strongest economic growth among major advanced countries, helped by consumer spending. Maybe the best thing the traders can say about the worst January for US stocks in seven years is that an excess of optimism will not be a problem for equities in 2016. New Zealand Visitor Arrivals (YoY) down to 10.5% in December from previous 11.1%.