A New Trading Year - Weekly Analysis

The new trading year starts on Monday the 5th with market events out of Europe. What exciting market activity will the new year bring?

Reporting from The Trading Room, welcome to Ahead of the Week for January 5th to 9th, 2015. All event times are GMT.

On Monday the 5th Germany announces Consumer Price Index figures for December at 13:00. CPI is expected to have declined to 0.4 percent from 0.6 percent on an annual basis, so as always, a better-than-expected number could have a positive effect on the Euro-Dollar.

On Tuesday, there’s trading news out of the US with the ISM Non-Manufacturing performance index for December, due out at 15:00. The benchmark is expected to fall to 58.2 from 59.3 on a monthly basis, and is a closely-watched indicator of US economic health.
Wednesday sees trading events from Europe’s biggest market, Germany, which announces Unemployment Change numbers for December at 08:55. Unemployment is expected to fall month-on-month by minus 5000, compared to the previously-reported minus 14,000. The Eurozone’s CPI data is in focus at 10:00, when the bloc reports inflation levels for December - previously reported at 0.7 percent on an annual basis. Inflation is currently a hot issue in the European Union, and the European Central Bank is on a course to stimulate the economy with super-low interest rates and bond purchases.

Last but not least on Wednesday, the FOMC releases its minutes at 19:00, and the market’s radar is on high alert for clues as to when it plans to raise US interest rates.

The big event on Thursday is at 12:00, when the Bank of England announces its monetary policy decisions for January. The BoE is currently stimulating the economy through asset purchases at the rate of 375 billion pounds per month, and keeping the key interest rate at the record low level of 0.5 percent.

At 01.30 on Friday, China weighs in with its Consumer Price Index figures for December, previously at the level of minus 0.2 percent on a monthly basis. In the Western markets, Canada announces its Net Change in Employment for December at 13:30. This was previously reported at minus 10,700. The biggest event of the week is at 13:30 with US Non-Farm Payrolls for December, which was higher-than-expected in November at 321,000 and is expected to come in at the level of 240,000 – barring any surprises.

Thanks for watching Ahead of the Week Report from Banc De Binary’s Trading Room research team. Wishing you successful trading and a very Happy Trading New Year.

Until next week!