On Monday, purchasing managers’ index (PMI) figures will be published in Europe from Germany and the UK, which will provide information on the course of economic activity this month.
The eurozone’s largest economy, Germany, will publish fourth-quarter GDP data on Friday, along with France and Spain. This figure shows how the Omicron variable is affecting economic recovery. Experts expect a decline in GDP in the fourth quarter.
U.S. Federal Reserve
Market participants are looking to the Fed for more clarity on the future path of interest rates after last week’s data showed U.S. inflation at its highest level in nearly forty years.
Therefore, on Thursday there will be an FOMC statement and the Fed decision on interest rates. This will be followed by an FOMC press conference.
U.S. Economic Data
On Tuesday, the CB consumer confidence data for the month of January will be announced. It is expected that this fell in January compared to an unexpected increase in December 2021. On Wednesday there will be figures for the sale of new homes from the month of December. In addition, the EIA will announce figures on the change in crude oil inventory last week.
Then, on Thursday, there will be important data on fourth-quarter GDP. A significant increase is expected here. In addition, there are pending home sales data from the month of December, data on core durable goods orders, and initial jobless claims.