By Lachlan Meakin
Major US, European and Australian Indices made modest gains last week, despite a Friday sell off on Wall St. Traders will have no shortage of news to digest this week, with the Federal Open Market Committee’s January policy meeting, major tech company earnings, US GDP figures and Australian CPI.
US equity traders will have a slew of big name Tech and blue chip companies reporting earnings this week, which will give a good indication of US economic health. With the FOMC announcement and GDP also being reported this week US equity and Index traders will be busy.
European markets are quiet on the news front and will be likely led by their counterparts on Wall St.
In the shortened trading week on Australian Markets we have the important CPI figures released 11:30 am EAST on Wednesday which will give an indication of any heat being put into inflation from the recent COVID stimulus measures undertaken by the Federal Government.
The US dollar index closed lower on the week for the first time in 2021, the losses however were orderly with this week’s moves likely to be driven by the US economic calendar.
SOURCE: GO MT4
After hitting 2 ½ year highs against the USD in recent weeks the Aussie dollar has consolidated but shown strength in holding the 0.77 level where support has been found.
This week’s CPI figures will be an important indicator of inflation and possible future interest rate moves by the RBA.
SOURCE: GO MT4
Commodities – Oil
US Crude Oil dropped back last week on higher than expected oil inventories, crude oil inventories for the week ended January 15 rose by 4.4 million barrels when a shortage of 1.2 Million barrels was expected. This week’s Crude inventory figure will be released on Wednesday night and could dictate if the Crude price can hold these recent highs where prices have stalled.
|Tuesday, 26 January 2021
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