On January 15, significant economic data will emerge from Europe and the United States, potentially influencing market dynamics. Publicly, analysts are expecting no big change in Germany’s full-year GDP growth figure. These numbers have the potential to tell us how the country is tackling the effects of persistent global headwinds. Out on the same day will be industrial production and balance of trade reports from the wider Euroland. These short papers will offer a detailed picture of the economic state across the Eurozone.
Here in the United States, a wave of key economic data is about to hit, starting with the employment situation report this Friday and continuing throughout January. The MBA mortgage applications report is scheduled for release on a specific date, shedding light on the housing market’s activity. Further, PPI will be released on the 13th too, which will serve as an early harbinger of inflationary forces coming out of the factory floor.
Retail sales numbers are likely to be released soon after, showing how people are spending and how confident they feel about the economy. Coming up, an analysis of business inventory data. This data would help provide a much clearer picture of supply chain trends and how retailers are responding by adjusting their inventories.
A third important indicator of market health is home sales. The existing home sales report is anticipated soon, providing valuable information on the real estate market’s recovery trajectory. The Energy Information Administration (EIA) will publish its weekly report of US crude oil stockpiles today. As such, this report is sure to impact energy market prices and drive overall sentiment.
The Federal Reserve’s Beige Book comes out soon. This report does provide incredible glimpses into the economy as told through the eyes of every district. This report should inform and enrich discussions of monetary policy as the Fed studies local economic conditions from all over the country.
Within the financial markets, important and striking price movements are making headlines. Silver prices have recently skyrocketed past $89.00 per ounce. This increase indicates the precious metals demand as global economic uncertainty and inflation persist. The US Dollar Index (DXY) has skyrocketed past the 99.00 level. This increase reflects the dollar’s growing strength relative to a broad range of other foreign currencies.
Treasury yields have ticked up, an indicator of climbing investor confidence in the economy. At the same time, WTI prices have recently rallied over the $61.00 per barrel level, a sign that energy markets expect an improving global demand picture. Gold prices have gained very strongly, breaking above the $4,630 level per troy ounce.
In the foreign exchange markets, the USD/JPY exchange rate has skyrocketed above 159.00. This dollar yen movement underscores the drag on US investor sentiment compared to that on Japanese investor sentiment.