After Biden’s election victory, the traders’ main focus will continue to be on the political landscape of the USA.
The Reserve Bank of New Zealand will announce its interest rate decision this week.
Other important events will be the ECB’s Annual Forum and the U.S. Inflation figures.
The US Dollar Index (DXY) fell last week as the market reacted to the election in the United States and the victory of Joe Biden. It also rose due to a possible stalemate in Washington, which leaves most of Trump’s policies intact. The currency also responded to the Fed’s interest rate decision, PMIs for manufacturing and services, and non-agricultural wages and salaries. Let’s look at some of the key events on the economic calendar that we need to watch out for this week
RBNZ interest rate decision
The Reserve Bank of New Zealand (RBNZ) will be the only major central bank to publish its interest rate decision this week. It will start its meeting on Tuesday and announce the decision on Wednesday morning.
Although the country has coped well with the Covid 19 pandemic, it still faces a significant slowdown due to the services sector. As a result, analysts surveyed by Reuters expect the central bank to leave the interest rate unchanged at 0.25% and to be relatively numb.
In addition to the RBNZ, we will receive key figures from New Zealand, including electronic card sales, external migration and visitor data, and business PMI.
Annual Forum of the ECB
The market will also focus on the annual forum of the European Central Bank (ECB), which will take place practically this week. Christine Lagarde will give the welcoming speech on Wednesday. She will be followed by other key central bank governors, including Andrew Bailey of the Bank of England and Jerome Powell of the Federal Reserve. Nevertheless, nothing new is expected in this forum, as the three banks have recently made their interest rate decisions. Last week, the BOE increased its asset purchases, while the Fed left everything intact.
U.S. inflation will be another important indicator in the economic calendar this week. Analysts surveyed by Reuters expect the consumer price index to rise by 0.2% in October, after rising by 0.4% the previous month. This will be the fifth consecutive month in which the inflation rate has increased. However, the annual inflation rate will remain below 2%, which is the Federal Reserve’s target.
Other countries will also publish their inflation figures. For example, China will release its data on Tuesday as analysts are pricing in a 0.8% increase.
UK GDP data
The British GDP data for the third quarter is another thing to keep an eye on in this week’s economic calendar. Analysts expect that the data to be released on Wednesday will show that the economy bounced back 15.8% in the third quarter. This will be a significant rebound after falling more than 19.8% in the previous month. They also expect GDP to fall by 9.4% year-on-year. However, this decline will be well below the increase of more than 30% in the United States.
Other important figures from the UK will be industrial production, manufacturing output and employment figures.
Other events to watch
There will be other important events in the economic calendar this week. On Friday, Eurostat will release the third quarter GDP estimate for the Euro-Zone. Analysts expect that the data will show that the economy grew by 12.7% in Q3. We will also receive inflation figures from Sweden and Germany. Investors will also be watching out for the Turkish lira after the president dismissed the country’s central bank governor for the second time in more than a year. Read our report on the best foreign exchange brokers here.