Next week’s economic calendar is packed with important events that could impact global markets, particularly the US dollar, euro, and Japanese yen. Here’s a simplified overview:

Monday, January 22:

• China: People’s Bank of China (PBOC) interest rate decision. This decision could affect the yuan’s value, impacting global trade and investment flows.
• Japan: Bank of Japan (BOJ) press conference. The BOJ’s comments on monetary policy will be closely watched, especially regarding its ultra-loose stance and potential future easing measures.

Tuesday, January 23:

• Japan: BOJ press conference (continued). Look for further insights into the bank’s policy and its impact on the yen and Asian markets.
• Eurozone: Eurozone Bank Lending Study. This study provides information on bank lending conditions and could affect the euro’s value.
• New Zealand: NZD CPI (Consumer Price Index) for the 4th quarter. This inflation data will influence the NZD’s performance.

Wednesday, January 24:

• Germany & Eurozone: PMI (Purchasing Managers’ Index) for manufacturing and services. These PMIs gauge business activity and could influence the euro’s value.
• UK: PMI for manufacturing and services. Similar to the Eurozone PMIs, this data will impact the GBP (British pound).
• US: PMI for manufacturing and services. These PMIs are crucial indicators of the US economy’s health and could affect the USD (US dollar).
• Canada: Bank of Canada (BoC) interest rate decision and press conference. The BoC’s monetary policy stance will directly affect the CAD (Canadian dollar).

Thursday, January 25:

• Eurozone: ECB (European Central Bank) rate decision and press conference. This is the most anticipated event of the week, as the ECB’s decision on interest rates will significantly impact the euro and global markets.
• US: Annual GDP (Gross Domestic Product) for the 4th quarter and durable goods orders data. These indicators will provide insights into the US economy’s strength and could affect the USD.

Friday, January 26:

• US: Personal Consumption Expenditures (PCE Core Price Index). This inflation data is closely monitored by the Fed and could influence future interest rate decisions, impacting the USD.
• Japan: Tokyo Consumer Price Indices (CPI and Core CPI). These inflation indicators could affect the yen’s value.

Additional Notes:

• The dollar may strengthen early in the week due to rising geopolitical tensions in the Middle East.
• Market participants will be paying close attention to central bank decisions and economic data throughout the week, with potential for volatility in various currencies.
• The ECB rate decision on Thursday is particularly significant and could have major implications for global financial markets.
• Be aware of potential event cancellations or changes to the calendar throughout the week.
• Volatility is expected around key events, especially press conferences and data releases.