Currency Wars

Highlights This Week

+  Investors will be looking toward a very busy week ahead including Non-Farm Payrolls, Unemployment Rate, a string of economic data, and the continued developments following the Greek elections. Traders will also be looking to see if central banks continue to loosen monetary policy, while earnings season continues with 3 of the 30 Dow components reporting during the week

+  Last week, Greece’s Alexis Tsipras of the anti-bailout Syriza party was sworn in as Greece’s Prime Minister. Tsipiras has pledged to negotiate with creditors over the Greek bailout with the IMF, EU and ECB. With uncertainty over moves by the Syriza party, expect continued volatility in the region as their banks shares dropped almost 40% after the election

+  Last week, Singapore was the next shoe to drop in the currency wars, announcing steps to let the Singapore Dollar appreciate at a slower pace. Denmark also cut its deposit rate last week for the third time in less than two weeks. Traders will be watching to see which central banks are next in taking unexpected steps to devalue their currency and stimulate their economy

+  A number of PMI readings across the globe are due out this week. If we see these readings come in lower than expected, this could be additional ammo for central banks to ease monetary policy

+  We have a loaded economic data filled week with Personal Spending, ISM Services, Factory Orders and Nonfarm Payrolls among the key data driven points. If these come in weaker than expected, it will confirm that the drop in the price of commodities is not helping the economy and has rather put further downward pressure on inflation 

+  This week will also see Unemployment Rates from multiple countries across the globe. Should we see an increase in unemployment rates, investors may move to defensive stocks on worries over deflation overseas

+  Earnings season continues with Exxon Mobil, Walt Disney, and Merck reporting this week 

MONDAY (2/2)

  • 10:00 AM ET – Personal Income - Dec
  • 10:00 AM ET – Personal Spending - Dec
  • 10:00 AM ET – Construction Spending – Dec
  • 10:00 AM ET – ISM Index – Jan
  • Japan Manufacturing PMI
  • China HSBC Manufacturing PMI
  • Spanish Unemployment Change
  • European Manufacturing PMI
  • Great Britain Manufacturing PMI
  • Earnings: Exxon Mobil, Anadarko Petroleum, Imperial Oil, Sysco   

TUESDAY (2/3)

  • 10:00 AM ET – Factory Orders - Dec  
  • 10:00 AM ET – Auto Sales - Jan
  • Australia Trade Balance
  • Reserve Bank of Australia Rate Statement
  • Great Britain Construction PMI
  • European PPI
  • New Zealand Global Dairy Trade Price Index
  • Earnings: Walt Disney, Gilead Sciences, BP, UPS, Emerson Electric, Aetna, Chipotle

WEDNESDAY (2/4)

  • 8:15 AM ET – ADP Employment Change - Jan
  • 10:00 AM ET – ISM Services - Jan
  • 10:30 AM ET – Crude Oil Inventories
  • New Zealand Unemployment Rate
  • Reserve Bank Of New Zealand Governor Graeme Wheeler speaks
  • China HSBC Services PMI
  • European Final Services PMI
  • Great Britain Services PMI
  • Canada Ivey PMI
  • Earnings: Merck, GlaxoSmith Kline, GM, Twenty-First Century Fox, Suncor Energy, ADP, Yum Brands, Allstate

THURSDAY (2/5)

  • 8:30 AM ET - Weekly Jobless Claims
  • 7:30 AM ET – Challenger Job Cuts – Jan
  • 8:30 AM ET – Trade Balance - Dec  
  • 8:30 AM ET – Productivity – 4Q
  • Australia Retail Sales
  • German Factory Orders
  • Bank Of England Interest Rate Statement
  • Earnings: Philip Morris, Sanofi, Astrazeneca, McKesson, Cigna

FRIDAY (2/6)

  • 8:30 AM ET - Nonfarm Payrolls - Jan
  • 8:30 AM ET - Unemployment Rate - Jan
  • 3:00 PM ET – Consumer Credit - Jan
  • Banks are closed in New Zealand in observance of Waitangi Day
  • Reserve Bank of Australia Monetary Policy Statement
  • Canada Building Permits
  • Canada Unemployment Rate
  • FOMC Member Dennis Lockhart speaks
  • Earnings: Dominion Resources, Marsh & McLennan, Moodys