Happy New Year, dear traders, and welcome to 2018! While celebrations might still be underway for some, we need not forget that the financial markets are always in motion. We are in the first week of the new year and already there are a number of events to pay attention to if you want to kick off 2018 on a profitable note.
First of all, this Wednesday we expect news from the Federal Reserve’s most recent meeting. After increasing interest rates in December the dollar failed to find support and actually ended 2017 by losing positions against most major currencies. Analysts would now be curious to hear more about the Fed’s expectations for inflation and wage growth before they can predict the dates for new rate hikes in 2018 (of which three are planned).
On Friday we will have more news from the United States in the form of a jobs report. So far a decrease in unemployment is not expected, but if it happens, it could give the USD a boost.
Also on Friday we would receive word from the European Union on inflation in the eurozone. Rising inflation will be the key determining factor for the ECB to move away from its stimulus program, and with strong growth throughout Europe, investors are eager to see increases.
