Week Ahead: Fed, ECB, and BoE Rate Decisions on the Menu
XM Group | Jan 27, 2023 06:55AM ET
Dollar awaits Fed update
It’s been a difficult few months for the US dollar. The world’s reserve currency lost a lot of ground as a persistent slowdown in inflation supported the notion that the Fed is about to end its tightening cycle. A winter ‘heat wave’ in Europe also played a role, by diminishing fears around the energy crisis and a harsh recession, boosting the euro.
Another problem for the dollar is that the impact of the Fed’s quantitative tightening program has been negated by the US Treasury lately. Faced with another debt ceiling standoff, the Treasury has been using its cash buffer at the Fed, essentially injecting liquidity back into the markets. This dynamic enabled the rally in ‘meme stocks’ and other risky assets, but it is negative for the dollar.
In Canada, the jobs report for January will be released on Friday, alongside the US data.
Finally, the corporate earnings season will kick into top gear next week with tech juggernauts like Apple (NASDAQ:AAPL), Google (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Meta, and many other household names releasing their quarterly results.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.