NAGA : Top 5 economic events of the last week this year

German Flash Manufacturing PMI, Australia Consumer Price Index (QoQ), BOC Monetary Policy Report, FOMC Statement, and more - another big week ahead Let's take a look!

Germany Markit Manufacturing PMI - (Monday, January 24)

On Tuesday, January 25th, at 24:30 GMT, Australia's Consumer Price Index (QoQ) will be released. The Markit Economics Manufacturing Purchasing Managers Index (PMI) measures the state of the manufacturing industry. The manufacturing PMI is an important indicator of business conditions and the overall economic situation in Germany because manufacturing accounts for such a substantial portion of total GDP.

The IHS Markit/BME Germany Manufacturing PMI was revised lower to 57.4 in December 2021 from a preliminary of 57.9, mirroring the previous month's reading of 57.4, which was the lowest since January 2021, as supply shortages continued to stymie industrial output. However, with enterprises seeing the lowest incidence of input delivery delays since January 2021, the rate of productivity growth has accelerated slightly. A result above 50 indicates that the EUR is bullish, while below 50 indicates that the EUR is bearish.

Watch out for EUR/USD.

Australia Consumer Price Index (QoQ) - (Tuesday, January 25)

On Tuesday, January 25th, at 24:30 GMT, the Australian Consumer Price Index (QoQ) will be released. The Australian Bureau of Statistics republishes the RBA's Consumer Price Index, which measures price fluctuations based on a comparison of retail prices of a representative shopping basket of goods and services. Inflation reduces the purchasing power of the Australian dollar.

The Consumer Price Index (CPI) is a crucial indicator for measuring inflation and changes in purchasing patterns. A high number for the AUD is considered favorable, while a low score is considered negative (or bearish). The following Australian Consumer Price Index (QoQ) consensus is 1, and the previous divergence was non-existent.

The Australian Consumer Price Index (CPI) grew to 119.70 points in the third quarter of 2021, up from 118.80 points in the second quarter of 2021. Economists predict a 1% increase in the quarterly CPI, owing primarily to higher gasoline prices and the rising cost of new homes. This would raise the annual rate to 3.1 percent, up from 3% in the September quarter and barely beyond the RBA's two to three percent objective.

Watch out for the AUD/USD.

Canada BoC Interest Rate Decision - (Wednesday, January 26)

The Bank of Canada will report its interest rate decision on Wednesday, January 26th at 15:00 GMT. The Bank of Canada chose to maintain its overnight rate goal of 0.25 percent, as predicted, and to maintain its forward guidance, which predicts an increase in the overnight rate in the middle quarters of 2022. Until then, officials committed to providing an adequate level of monetary stimulus to support the Canadian economy and meet the 2-percentage-point inflation objective.

On the pricing front, continued supply interruptions continue to maintain high inflation rates, but gasoline prices, a major upside risk factor, have recently fallen. Nonetheless, the Bank of Canada expects inflation to stay elevated in the first half of 2022 before easing to 2% in the second half of the year. Finally, recent economic statistics indicated that the economy gained significant momentum in Q4, particularly in the labor and housing sectors, but the omicron version of the coronavirus and the destruction caused by the floods in British Columbia added to the negative risks.

Watch out for the USD/CAD.

US Gross Domestic Product Annualized - (Thursday, January 27)

On Thursday, January 27th, at 13:30 GMT, the US Gross Domestic Product annualized will be released. The US Bureau of Economic Analysis's Gross Domestic Product Annualized represents the monetary value of all goods, services, and structures generated inside a country over a certain period.

GDP Annualized is a gross measure of market activity that shows how fast a country's economy grows or shrinks. A high reading or a better-than-expected number is generally considered favorable for the USD, whereas a low reading is considered flawed. The next annualized GDP consensus in the United States is 5.6 percent, up from 2.3 percent previously.

Watch out for the EUR/USD and other dollar-related currency pairs.

US Core Personal Consumption Expenditures - Price Index (MoM)- (Friday, January 28)

On Friday, January 28th, at 13:30 GMT, the US Core Personal Consumption Expenditures Price Index (MoM) will be published. Core Personal Consumption Expenditures, the average money that is spent by consumers in a month, was released by the US Bureau of Economic Analysis.

"Core" eliminates seasonally volatile commodities such as food and energy to get an accurate expenditure measurement. The Core PCE is an important indicator of inflation.

A high reading indicates a stronger US economy and typically drives an uptrend in the dollar. At the same time, a low reading suggests that the USD is bearish. The following United States Core Personal Consumption Expenditures Price Index (MoM) is expected to be 0.5, with the previous deviation being 1.25.

Watch out for the EUR/USD and other dollar-related currency pairs.

That's it for this week!

Make sure to follow other market events on NAGA's Economic calendar.

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