The five most important events during the week 25-29.9.2017

1. The Janet Yellen speech
After the Fed signaled that it still intends to raise rates in December, the focus of traders and investors this week will again be on Janet Yellen's statement on Tuesday. Comments will also focus on inflation and monetary policy uncertainty and will be closely followed by investors. The market is currently assessing the US interest rate pick-up in December at 63.2%. During the week, we will get very important data for the US economy, such as consumer confidence, sales of new homes and GDP.
If Yellen is Hawkish set in his speech and US economic data is better than expected, we will see a strong week for the dollar.

2. The speech of Mario Draghi
On Monday, ECB President Mario Draghi has to testify about the economy and monetary developments in the European Parliament's Committee on Economic and Monetary Affairs in Brussels, and on Friday Draghi plans to talk about the independence of the central bank at a conference organized by Bank Of England in London.

In his latest speech, Draghi mentioned that the ECB is ready to cut its quantitative easing program in October. This fact will cause traders to keep a close watch on current statements as the date for the next ECB meeting is approaching, and any comments by Draghi would lead to a strong volatility in the euro.

In the week we will receive data on Business Expectations and the IFO Business Climate in Germany as early as Monday. On Thursday, we expect CPI from Germany, and on Friday Germany's retail sales, unemployment rate also from Germany and the euro zone's CPI.

3. Mark Carney will speak at the Bank of England conference on Thursday
BoE CEO Mark Carney will launch the Bank Of England conference, marking 20 years of independence. Then, on Friday, he is expected to make a final statement at the meeting and comment on BOE's monetary policy and plans for ahead.

In addition to BOE, traders will focus their attention on final reporting of economic growth in the second quarter on Friday. The expectations of market participants are that the effect of Brexit will once again affect and the likelihood of pressure on the pounds is growing.

4. Speech by Stephen Poloz, Governor of Bank Of Canada
BOC Managing Director Stephen Poloz will talk about the development of the Canadian economy and its monetary policy implications on Tuesday. The Canadian economy surprised many with the rate hike earlier this month, this was the second time this year. In his last speech, Polos mentioned that he did not exclude further interest rises until the end of the year. "It all depends on what economic data we will get by the end of the year," Polos said in his latest statement.

5. Speech by Haruhiko Kuroda on Monday and Thursday
Bank Of Japan Governor Haruhiko Kuroda will address a meeting with business leaders in Osaka on Monday, and many of the audience questions are expected to focus on the bank's monetary policy.

The Kuroda will also speak on Thursday at the Tokyo National Securities Convention. Last week, the BoJ kept its monetary policy unchanged, with the impression that for the first time member of the board voted differently, citing that the current monetary policy is insufficient to stimulate inflation to rise to 2%.

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

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