Monday – President of the European Central Bank Mario Draghi will give his latest speech in regard to the state of the European economy. The minutes of the Reserve Bank of Australia meetings will be published on Tuesday two weeks after the interest rate decision. The main event is clearly the FOMC Minutes, which come out on Wednesday. Employment data will be released on Thursday by Australian Statistician. On Friday, Statistics Canada will release the consumer price index for the first month of the year.
USD tumbled for the second straight week against JPY and other major counterparts in a volatile week for global markets. On Monday and on Thursday Dow Jones was down more than 2%, only to close well above the 2% threshold. No real damage to shorts yet in the oil market, only a little flesh wound. EURUSD raised 230 pips last week to top-out at the 1.1350 resistance line before the current bearish correction saw price retreat 100 pips. We expect risk appetite to pick up this week, which should keep the USD supported against the funders; EUR, JPY and CHF. U.S. stocks rallied on Friday, snapping a five-day losing streak in the S&P 500, as financial, commodity-related and other beaten-down shares rebounded. USDJPY has moved to new session highs. AUDUSD posted small gains last week, as the pair closed just above the 0.7100 line. NZD under-performed on Friday losing ground against all its major trading partners, with better than expected U.S. retail sales data and a spike in Oil prices boosting global risk appetite.
China Ministry of Commerce report that retail sales over the holiday are up 11.2%. An assessment of Greece attempts to reform its struggling economy is being held up by disagreements between the European Union and the IMF, Prime Minister Alexis Tsipras has said. According to 40 forecasters polled by the Philadelphia Fed, the U.S. economy will grow 2.1% this year, a half-point worse than what those same forecasters predicted just three months earlier. On Monday, Japan GDP numbers are also expected to show slowdown. It was an unspectacular end to 2015 for the German economy, with growth failing to accelerate from the 0.3% seen in the third quarter.