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The Week Ahead: 5 Things to Watch on the Economic Calendar

Published 01/22/2017, 04:13 AM
Updated 01/22/2017, 04:13 AM
© Reuters.  5 Things to Watch on the Economic Calendar In The Week Ahead

Investing.com - After a historic week in which Republican Donald Trump was sworn in as the 45th President of the United States, investors will get back to the business of watching economic data for fresh indications on the health of the economy, with Friday's advanced reading for U.S. growth in the spotlight.

Meanwhile, in the U.K., market players will pay close attention to a first estimate of U.K. fourth quarter GDP for further signals on the continued effect that the Brexit decision is having on the economy.

In the euro zone, traders will await flash survey data on euro zone business activity for fresh clues on the health of the region’s manufacturing and services sector.

Elsewhere, Japanese inflation data will also be in focus as investors assess the need for further stimulus in the world's third's largest economy.

In emerging markets, traders will focus on a key rate decision by Turkey's central bank on Tuesday.

Ahead of the coming week, Investing.com has compiled a list of the five biggest events on the economic calendar that are most likely to affect the markets.

1. U.S. Advanced 4th Quarter Growth Data

The U.S. is to release preliminary figures on fourth quarter economic growth at 8:30AM ET (13:30GMT) Friday. The data is expected to show that the economy expanded at a healthy 2.2% annual rate in the final three months of 2016, easing from growth of 3.5% in the third quarter.

Besides the GDP report, this week's calendar also features U.S. data on existing home sales on Tuesday, initial jobless claims and new home sales on Thursday, followed by durable goods orders and revised consumer sentiment on Friday.

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A recent string of solid data reinforced the view that the U.S. economy is sufficiently robust to warrant higher interest rates in the months ahead.

2. U.K. Preliminary Q4 GDP Figures

The Office for National Statistics is to produce preliminary data on U.K. economic growth for the fourth quarter at 09:30GMT (4:30AM ET) on Thursday.

The report is forecast to reveal the economy grew 0.5% in the September-December quarter, after expanding 0.6% in the preceding quarter, confirming that the British economy remains on a solid footing.

On an annualized rate, the British economy is expected to grow 2.1% in the fourth quarter, down slightly from growth of 2.2% in the previous three-month period.

Also in focus will be the U.K.'s High Court ruling due on Tuesday at 09:30GMT (4:30AM ET) regarding the government's ability to bypass parliament and initiate the Brexit process by triggering Article 50.

3. Flash Euro Zone PMIs for January

The euro zone is to publish preliminary data on manufacturing and service sector activity for January at 09:00GMT (4:00AM ET) on Tuesday, amid expectations for a modest decline.

Ahead of the euro zone PMI's, France and Germany will release their own PMI reports at 08:00GMT and 08:30GMT respectively.

In addition, market participants will be focusing on Wednesday's IFO survey data on German business confidence to gauge sentiment in the euro zone's largest economy.

4. Japanese December Inflation Data

Japan's Statistics Bureau will publish December inflation figures at 23:30GMT Thursday (6:30PM ET). Market analysts expect the headline figure to remain negative, falling 0.4% year-on-year, which would be the 13th straight month of declines.

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The country has been struggling to hit its 2% consumer price target, keeping pressure on the Bank of Japan to maintain its aggressive stimulus package when it meets next week.

5. Turkish Central Bank Decision

Currency traders will be paying close attention to the Central Bank of the Republic of Turkey's (CBRT) monetary policy decision at 12:00GMT (7:00AM ET) on Tuesday.

Investors expect the Turkish central bank to raise its benchmark interest rate by 50 basis points to 8.5% after recent attempts to defend the Turkish lira with liquidity measures proved ineffective.

The lira has dropped as much as 10% since the start of 2017, battered by concern over Turkey's political and economic outlook as well as and doubts about whether the authorities will take decisive steps to arrest the slide.

Stay up-to-date on all of this week's economic events by visiting: http://www.investing.com/economic-calendar/

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