The following are some of the important economic data that will be the focus of the market throughout the week.
China Gross Domestic Product Data (Monday 10.00 AM): China's GDP growth for the last quarter of 2020 will be evaluated by investors. The reading figures are expected to increase over the previous quarter and will boost investor confidence in the recovery of economic activity for the world's second largest economy.
German ZEW Economic Sentiment (Tuesday 6.00 PM): This survey data of investor institutions in Germany will measure the level of economic health in Germany as the largest economy in Europe. Data readings have remained above optimistic levels since April last year.
UK Inflation Data (Wednesday 3.00 PM): After inflation in the UK rose to 0.7% last October, the data reading began to decline again to 0.3% in November. The reading for December is expected to increase slightly to 0.5%.
European Inflation Data (Wednesday 6.00 PM): The inflation rate in Europe recorded a low reading for 4 consecutive months due to the economic crisis facing the pandemic crisis. The final inflation reading for December 2020 remains expected to be as weak as the previous reading.
Central Bank of Canada Policy Meeting (Wednesday 11.00 PM): The Bank of Canada (BOC) is expected to continue to maintain its lowest unchanged interest rate at 0.25%. Investors are wary of rumors for the central bank to lower rates this week following a pandemic situation.
Australian Employment Report (Thursday 8.30am): Increased employment will provide guidance on the health of the labor sector. But the increase in employment in Australia for last December is expected to be lower while the unemployment rate is forecast to decline slightly.
Japan Central Bank Policy Meeting (Thursday): The Bank of Japan (BOJ) is expected to continue to keep interest rates at a low of -0.10%. Policy easing measures are also seen to be actively working in Japan in support of economic stability.
European Central Bank Policy Meeting (Thursday 8.45pm): The European Central Bank (ECB) at the last meeting highlighted the issue of low inflation as well as high exchange rates. Legislators are expected to re-voice the issue. No policy changes are expected for the latest meeting.
