Have you finished your coffee? It is better to pour another cup, since the week has just begun, and 3 very important events have already been planned.
Economic data will become more interesting in the second half of the week. In connection with the information outlined below in this article, we recommend following the following currencies with special care: EURUSD, GBPUSD, USDJPY.
Thursday – ECB meeting on monetary policy
The ECB will announce its new decision regarding monetary policy at 11:45 GMT on Thursday, however, no major changes are expected.
The regulator is expected to answer the question of whether to keep the volume of bond purchases unchanged or to start reducing the monetary incentive policy.
Most likely, the details of the new monetary policy configuration will be known during the press conference of President Mario Draghi, appointed 45 minutes after the announcement of the decision.
Currently, the purchase of bonds is carried out at 40 billion euros per month, including government and corporate bonds. In January, the volume of the program of quantitative easing was at around 60 billion per month.
According to rumors, this figure is planning to reduce to the level between 25 and 40 billion. However, Draghi has more than once spoken in favor of stimulus over the past few weeks, which raises doubts on the issue of monetary policy in the region.
Thursday – Inflation Reports in Japan.
The recent elections in Japan were held as planned and Prime Minister Shinzo Abe received 2/3 of the parliament – the majority that would allow him to push through Abenomika and revise the country’s peaceful constitution (useful, given the flying around the North Korean missiles). p >
Abe is an ardent supporter of monetary incentives and, thus, we do not expect major changes in the monetary policy of the Bank of Japan in the near future.
However, it is very important to monitor inflation – one of the key benchmarks of the regulator. The Bureau of Statistics will release the October report at 23:30 GMT on Thursday with a forecast of 0.8% growth year on year. Bank of Japan’s inflation target remains at 2%.
Friday – US data on GDP for the third quarter.
US GDP data for the third quarter will be published at 12:30 GMT on Friday and there is no doubt that everyone will be watching this. Investors are interested in the impact of recent disasters on economic growth.
According to the general opinion, the data is expected to show an increase of 2.6% on an annualized basis (a value of 3.1% was previously predicted). Most likely, the sectors of industrial production, real estate and retail sales will be guilty of this.