See the DailyFX Economic Calendar and see what live coverage for key event risk impacting FX markets is scheduled for next week on the DailyFX Webinar Calendar.
01/10 Tuesday | 03:30 GMT | CNY Consumer Price Index (DEC)
The last Chinese inflation print of 2016 is expected to show prices falling to +2.2% y/y from +2.3% y/y with consumer unlikely to be affected by the recent rise in commodity prices. The price of food stuffs in the release will be closely watched after a +4% y/y increase in November helped push inflation to +2.3% y/y from a prior month’s +2.1% y/y. The National Bureau of Statistics says that prices rose on average by 2% y/y in the first 11-months of 2016, still below Beijing’s target of around +3% y/y. Further signs of disinflation, which in viewed in context of the recent Chinese Yuan selloff, may serve to heighten concerns over the domestic Chinese market.
Pairs to Watch: AUD/JPY, USD/CNH
01/10 Tuesday | –:– GMT | CNY New Yuan Loans (DEC)
Chinese fiscal and monetary authorities have been dealing with a capital exodus in recent weeks, with the Chinese Yuan falling precipitously against the US Dollar in December. Although officials have been taking steps in recent days to pare the declines, it’s clear that issues in the domestic Chinese economy, mainly over-indebtedness among corporates, is starting to weigh growth. Further evidence that credit growth is slowing down could foster further discontent over recent market developments. Economists are expecting the figure to coming in at 676.0b, down from 794.6b in the prior month.
Pairs to Watch: AUD/JPY, USD/CNH
01/12 Thursday | 13:30-18:45 GMT | USD Five Fed Policymakers Give Speeches
Amid an otherwise quieter US economic calendar, the sheer volume of Fed policymakers speaking over the coming days necessarily suggests that market participants will eagerly be watching the newswires for hints over potential changes in monetary policy. After a period of steady labor market improvement and signs finally emerging that wage growth is picking up (per the last NFP report), Fed speakers will be watched for clues about 1) the timing of the next rate hike (markets are currently pricing in June 2017) and 2) the pace of normalization (are we more likely to see two or three rate hikes). Of the eight speeches this week (not counting Fed Chair Yellen’s remarks to educators, which won’t discuss future monetary policy), five of them are clustered on Thursday. As US Treasury yields move around these remarks, so too will the US Dollar; most important may be how each individual policymaker has factored in President-elect Trump’s much-hyped fiscal stimulus into their expectations.
