Date: 20-Jan-25 | Mon | All Day IST Currency: USD Importance: 3 Notes: Martin Luther King Jr. Day is a federal holiday in the United States, observed annually on the third Monday of January to honor the civil rights leader Dr. Martin Luther King Jr. In 2025, it falls on January 20th, coinciding with the presidential inauguration.

Market Impact: U.S. financial markets are closed. Trading volumes in global markets may be lower due to reduced U.S. participation.

Learn More: Legacy Reference

Date: 21-Jan-25 | Tue | 12:30 IST Currency: GBP Importance: 2 Forecast: 4.30% Previous: 4.30% Notes: Bloomberg estimates that unemployment could remain steady at 4.3%, while wages excluding bonuses may decline from 5.2% in October to 5.0% in November. It should be noted that the decrease in wages is a key factor easing inflation, potentially paving the way for the Bank of England's Monetary Policy Committee to cut interest rates further this year. Such a move could weaken the pound against other major currencies. Conversely, stronger-than-expected wage growth could signal persistent inflation, limiting rate cuts and boosting the pound's performance against other currencies.

Learn More: GBPJPY GBPCAD

Date: 21-Jan-25 | Tue | 12:30 IST Currency: GBP Importance: 2 Previous: 5.20% Notes: Bloomberg estimates that unemployment could remain steady at 4.3%, while wages excluding bonuses may decline from 5.2% in October to 5.0% in November. It should be noted that the decrease in wages is a key factor easing inflation, potentially paving the way for the Bank of England's Monetary Policy Committee to cut interest rates further this year. Such a move could weaken the pound against other major currencies. Conversely, stronger-than-expected wage growth could signal persistent inflation, limiting rate cuts and boosting the pound's performance against other currencies.

Learn More: GBPJPY GBPCAD

Date: 21-Jan-25 | Tue | 19:00 IST Currency: CAD Importance: 1 Forecast: 1.90% Previous: 2.00% Notes: December's Consumer Price Index will also be released, with Bloomberg predicting the YoY inflation headline to edge lower from 1.9% in November to 1.8% in December.

Last year, the Bank of Canada reduced interest rates from 5% to 3.25%. Continued declines in inflation could set the stage for additional cuts this year. Notably, Canadian officials have hinted at further rate reductions in response to US tariffs proposed by incoming President Trump, aimed at pressuring Canada politically.

Learn More: CADJPY GBPCAD

Date: 22-Jan-25 | Wed | 3:15 IST Currency: NZD Importance: 2 Forecast: 0.50% Previous: 0.60% Notes: According to Bloomberg, New Zealand's YoY inflation headline is expected to decrease slightly, from 2.2% in the third quarter to 2.1% in the fourth quarter. This decline could enable the Reserve Bank of New Zealand to continue its monetary easing, following last year's interest rate cuts from 5.5% to 4.25%.

However, a higher-than-expected rise in inflation could slow the Reserve Bank's rate-cutting trajectory, potentially boosting the value of the New Zealand dollar against major currencies like the US dollar.

Learn More: NZDUSD

Date: 23-Jan-25 | Thur | 19:00 IST Currency: USD Importance: 3 Forecast: 217K Previous: 201K Notes: Initial Jobless Claims measures the number of people who filed for unemployment insurance for the first time during the past week. This is the most timely U.S. economic data, but the market impact varies from week to week.

A reading that is higher than forecast is generally negative (bearish) for the USD, while a lower than forecast reading is generally supportive (bullish) for the USD.

Learn More: USDJPY EURUSD

Date: 23-Jan-25 | Thur | 22:30 IST Currency: Global Importance: 3 Previous: -1.962M Notes: The Energy Information Administration's (EIA) Crude Oil Inventories measures the weekly change in the number of barrels of commercial crude oil held by US firms. The level of inventories influences the price of petroleum products, which can have an impact on inflation.

If the increase in crude inventories is more than expected, it implies weaker demand and is bearish for crude prices. The same can be said if a decline in inventories is less than expected. If the increase in crude is less than expected, it implies greater demand and is bullish for crude prices. The same can be said if a decline in inventories is more than expected.

Learn More: USOILRoll

Date: 23-Jan-25 | Fri | 8:30 IST Currency: JPY Importance: 3 Forecast: 0.50% Previous: 0.25% Notes: Bank of Japan (BOJ) policy board publishes its decision about where to set the target overnight rate. As short term interest rates are an important determinant of currency valuation, traders watch interest rate changes closely. A reading that is stronger than forecast is generally supportive (bullish) for the JPY, while a weaker than forecast reading is generally negative (bearish) for the JPY.

Learn More: USDJPY EURJPY

Date: 23-Jan-25 | Fri | 20:15 IST Currency: USD Importance: 3 Forecast: 49.60 Previous: 49.40 Notes: Since the beginning of Q3 last year, the PMI has been in contraction territory (below 50).

Bloomberg forecasts the index to slightly improve from 49.4 to 49.6. Any reading above expectations would signal progress toward exiting the contraction zone, positively impacting the US GDP for Q4 and bolstering stock indices like the Dow Jones Industrial Average (US30).

Learn More: USDJPY EURUSD US30

Date: 23-Jan-25 | Fri | 20:15 IST Currency: USD Importance: 3 Forecast: 56.80 Notes: The Service PMI release is published monthly by Markit Economics. The data are based on surveys of over 400 executives in private sector service companies. The surveys cover transport and communication, financial intermediaries, business and personal services, computing & IT, hotels and restaurants.

An index level of 50 denotes no change since the previous month, while a level above 50 signals an improvement, and below 50 indicates a deterioration. A reading that is stronger than forecast is generally supportive (bullish) for the USD, while a weaker than forecast reading is generally negative (bearish) for the USD.

Learn More: USDJPY EURUSD

Date: 23-Jan-25 | Fri | 20:30 IST Currency: USD Importance: 3 Forecast: 4.16M Previous: 4.15M Notes: Existing Home Sales measures the change in the annualised number of existing residential buildings that were sold during the prior month. This report helps to gauge the strength of the U.S. housing market and is an important indicator of overall economic strength.

A reading that is stronger than forecast is generally supportive (bullish) for the USD, while a weaker than forecast reading is generally negative (bearish) for the USD.

Learn More: USDJPY EURUSD

Date: 30-Jan-25 | Thu | 0:30 IST Currency: USD Importance: 3 Forecast: 4.38% Previous: 4.62% Notes: Recent data indicates that while inflation has moderated to 2.4% as of November 2024, it remains above the Federal Reserve’s 2% target. Simultaneously, the labor market continues to exhibit resilience, with jobless claims reaching an eight-month low. This combination of easing inflation and a strong labor market may provide the Federal Reserve with increased flexibility to adjust interest rates without reigniting inflation concerns, thereby supporting the possibility of a soft landing for the economy.

Learn More: CME FedWatch