Investing.com - In the week ahead, investors will be looking to Wednesday’s testimony by Fed Chair Janet Yellen and Friday’s data on U.S. retail sales for further indications on the strength of the world’s largest economy.
Friday’s preliminary report on euro zone fourth quarter growth will also be closely watched amid heightened expectations for more easing by the European Central Bank in the coming months.
1. Yellen testimony
Fed Chair Janet Yellen is to testify on the semiannual monetary policy report before the House Financial Services Committee in Washington on Wednesday and her comments will be closely watched as the market tries to gauge whether another interest rate increase in March is still on the cards.
2. U.S. retail sales
The Commerce Department is expected to release data on U.S. retail sales for January at 0.8.30 ET on Friday.
The report is expected to show that sales rose 0.1% last month after dipping 0.1% in the final month of 2015.
3. Euro zone GDP
The euro zone is to release preliminary data on fourth quarter gross domestic product at 10.00 GMT on Friday.
The euro area economy is expected to have grown just 0.3% in the final quarter of 2015, matching the third quarter and with inflation still running well below the ECB's 2% target, expectations are high for more easing.
ECB President Mario Draghi indicated that last month that more stimulus could be implemented, possibly as soon as the bank’s next meeting in March.
4. China market holiday
Markets in Shanghai and Hong Kong will be closed from Monday for the five-day long Lunar New Year holiday.
5. China’s forex reserves drop
The People’s Bank of China said Sunday that its foreign-exchange reserves fell to $3.23 trillion in January, the lowest level in more than three years.
The decline in reserves added to doubts about Beijing’s ability to stabilize the yuan without triggering further capital flight, after attempts to guide the currency lower last month triggered a sharp selloff in global financial markets.
Stay up-to-date on all of this week's economic events by visiting: http://www.investing.com/economic-calendar/