Key Economic Announcements for Week 1 - 2nd to 5th January 2024
With 2023 now behind us, we are now looking ahead at the high impact economic announcements which we believe will have the biggest impact on currency movements for January. There is a busy schedule with around 60 high impact announcements set for this month, which we anticipate there will be volatility in the FX market as the market makers will try to predict and use this data to evaluate the key global economies' economic positions as we head into Q1.
This weeks high-importance announcements will potentially set the tone for currency movements on the data released.
Key Announcements
Week 1 - 2/1/24 to 5/1/24
02/01/2024 01:45 Caixin Manufacturing PMI HIGH CNY
02/01/2024 12:00 BoE MPC Vote Rate Hike HIGH GBP
02/01/2024 12:00 BoE Interest Rate Decision HIGH GBP
02/01/2024 12:00 BoE MPC Vote Rate Cut HIGH GBP
02/01/2024 12:00 BoE Asset Purchase Facility HIGH GBP
02/01/2024 12:00 Monetary Policy Report HIGH GBP
02/01/2024 12:00 BoE Monetary Policy Report HIGH GBP
02/01/2024 12:00 BoE MPC Vote Rate Unchanged HIGH GBP
02/01/2024 12:00 BoE Minutes HIGH GBP
02/01/2024 12:30 BoE's Governor Bailey speech HIGH GBP
02/01/2024 15:00 ISM Manufacturing PMI HIGH USD
03/01/2024 01:45 Caixin Manufacturing PMI HIGH CNY
03/01/2024 07:00 Retail Sales (YoY) HIGH EUR
03/01/2024 10:00 Harmonized Index of Consumer Prices (MoM) HIGH EUR
03/01/2024 10:00 Core Harmonized Index of Consumer Prices (YoY) HIGH EUR
03/01/2024 10:00 Core Harmonized Index of Consumer Prices (MoM)HIGH EUR
03/01/2024 10:00 Harmonized Index of Consumer Prices (YoY) HIGH EUR
03/01/2024 15:00 ISM Manufacturing PMI HIGH USD
04/01/2024 01:45 Caixin Manufacturing PMI HIGH CNY
04/01/2024 14:00 ISM Manufacturing PMI HIGH USD
05/01/2024 01:45 Caixin Manufacturing PMI HIGH CNY
05/01/2024 06:00 Retail Sales (YoY) HIGH EUR
05/01/2024 12:15 ADP Employment Change HIGH USD
05/01/2024 14:00 ISM Manufacturing PMI HIGH USD
05/01/2024 18:00 Fed Monetary Policy Statement HIGH USD
05/01/2024 18:00 Fed Interest Rate Decision HIGH USD
05/01/2024 18:30 FOMC Press Conference HIGH USD
05/01/2024 22:45 Unemployment Rate HIGH NZD
05/01/2024 22:45 Employment Change HIGH NZD
GBP/EUR
GBP EUR has seen a pull back from the December high of 1.17 and dropped to 1.1472 there has been a slight recovery for GBP currently trading around 1.1545. We anticipate that the BOE will keep interest rates at 5.25% which will potentially cause volatility for GBPEUR as the market makers will want to see interest rates come down, however with inflation still above the desired 2.2% we don't expect to see interest rates to fall until inflation is in line with the UK's fiscal policy on inflation. This will cause some frustration to businesses as the cost of borrowing is high and could stifle growth plans.
GBP USD
We have seen a 3.6% increase in GBP against USD through Q4 with GBP moving from 1.2264 to 1.2719 with GBP gaining % in December against USD.
There is anticipation that the FED will start to reduce interest rates by 0.25% in March however, inflation will need to be continuing to fall for this to happen.
Our Thoughts
Having the right systems and processes in place can help manage currency risk.
At PathFinder FX we are offering a complimentary Foreign Exchange Audit to review your business's processes, strategies and systems. This will ensure you are getting the most competitive rates, service and fintech solutions to optimise your foreign currency exposure.
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