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By Skin A.I [Complex Analyst, Digital Futurist]
The consensus in the investment world is that the global market is a major financial hub, providing an outlet for intense competition among buyers and sellers and, more importantly, providing a center to manage price risks. The global market is extremely liquid, risky and complex by nature, but it can be understood with the right analysis.

[The views expressed by Noor Capital columnists are those of the author and do not necessarily reflect the views of the website, and do not also serve as investment advice]


Market Focus: Jan. 17

All Eyes On UK PM May's Brexit Conference

Anxiety seems to be the order of the day in recent times. Apart from Trump's threat to German Auto Manufacturers (with 35% Import Tariff), China warns Trump on Taiwan stance, Brexit is causing Investors sleepless nights, and Oil prices were under pressure on Monday due to doubts that large Oil Producers will reduce Production as promised and on expectations that US Shale Production would increase again this year. Meanwhile, Saudi Arabia is to launch $30 to $50 billion Renewable Energy Program soon.

Market Watchers are not overlooking the fact that the Trump Rally is fast fading. Little surprise as there is growing skepticism about Trump's ability to deliver on his promises. Also, Trump's conduct and personality appear not to be helping matters; constant stream of tweets and offhand comments, more often than naught, offer conflicting signals.

For Pound Traders, this week is good news. 2 major things to watch out for today - 1. UK Inflation Reports 2. PM May's Brexit Conference. Recall that the last released CPI and Core CPI both beat expectations. These Inflation readings are vital to the Bank of England because their mandate is to maintain Price Stability. BoE Boss Carney has mentioned that his tolerance for higher Price Levels is quite limited. For the December Readings to be released today, it is expected that CPI will advance and Core CPI will hold steady. For the Brexit Speech, unless PM May is able to convince Pound Traders that the UK can emerge a much stronger nation post-Brexit, mayhem could set in and drag the Sterling down. Let's see if it ends up being a Pound Dump Party.

Sterling took a dive Monday, weakening against all of its major peers ahead of the UK Prime Minister's much-anticipated speech today. The Bank of Canada (BoC) will release its Interest Rate announcement and Monetary Policy Report tomorrow, Wednesday. Governor Stephen Poloz will host a Press Conference starting at 11:15 AM ET same Wednesday, about an hour and fifteen minutes after the Release. The BoC is expected to keep Rates unchanged at 0.50%. The European Central Bank (ECB) will publish its minimum bid rate Thursday. Central Banks will be off to a slow start in 2017 as the ECB is also expected to keep Interest Rates and its QE Program unchanged in the first meeting of the year.

Potential Catalysts
Data Front

  • UK CPI (YoY) (Dec) (4:30 AM ET)
  • UK CPI (MoM) (Dec) (4:30 AM ET)
  • UK PPI Input (MoM) (Dec) (4:30 AM ET)
  • German ZEW Current Conditions (Jan) (5:00 AM ET)
  • German ZEW Economic Sentiment (Jan) (5:00 AM ET)
  • Eurozone ZEW Economic Sentiment (5:00 AM ET)
  • US NY Empire State Manufacturiing Index (Jan) (8:30 AM ET)
  • New Zealand Global Dairy Trade Price Index (Tentative)
  • New Zealand NZIER QSBO Capacity Utilization (Q4) (4:00 PM ET)
  • Australia Westpac Consumer Sentiment (6:30 PM ET)

  • Central Bank Speak

  • ECB Governing Council Member and President, De Nederlandsche Bank Ewald Nowotny Speaks (6:00 AM ET)
  • UK Prime Minister Theresa May Speaks (6:45 AM ET)
  • New York Federal Reserve President William Dudley Speaks (8:45 AM ET)
  • US Federal Reserve Board of Governors Lael Brained Speaks (10:00 AM ET)
  • US Secretary of Treasury Jacob Lew Speaks (10:00 AM ET)
  • San Francisco Federal Reserve President John Williams Speaks (6:00 PM ET)

  • Read More

    Updated 2h ago

    Noor Capital
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