The coming week follows one during which the dollar slipped against the yen as investors retreated from risky trades, shaken by U.S. President Barack Obama's proposals to rein in high-stakes bets by U.S. banks.
Concerns about the fiscal situation in Greece and other smaller euro zone countries, meanwhile, dragged the euro down to a 6-month low against the greenback last week.
The yen hit a 5-week high against the dollar and a 9-month peak against the euro, as global stock markets slumped for a second day in the fallout from Obama's proposals to limit the size of banks' and curb their proprietary trading.
This week, traders will await the Fed’s interest rate announcement and the U.S. GDP report, as well as another spate of quarterly earnings reports. Ahead of the coming week, Investing.com has compiled a list of these and other significant economic events likely to affect the markets.
Monday, Jan. 25:
The Australian Bureau of Statistics will start the week by releasing its quarterly Producer Price Index, a figure that that has a strong impact on the Aussie.
Later, Germany’s Gfk Group will release its Consumer Climate Survey, an early indicator of current economic conditions and consumer expectations, which is expected to drop from 3.30 to 3.20.
The National Association of Realtors will then release data on U.S. Existing Home Sales, the main gauge of the condition of the national housing market.
Also Monday, Apple Inc. will report its first-quarter results. These will likely affect the Nasdaq 100 Index, which tumbled 3.01% on Friday.
Tuesday, Jan. 26:
The Bank of Japan will make its interest rate announcement. While the overnight call rate is not expected to move from 0.1%, the subsequent monetary policy statement could sure shake the yen, especially if economic forecasts are altered.
The U.S. Federal Open Market Committee will also announce its decision on short term interest rate.
The day will feature another of the main economic events of the week: the release data on Britain’s GDP, the main measure of economic activity and growth, which is expected to increase by 0.40% after a drop of 0.20%.
Also Tuesday, Yahoo Inc. posts its fourth-quarter results.
Wednesday, Jan. 27:
The Bank of Japan will release its monthly report on inflation, economic conditions and monetary policy outlook.
Later, the U.S. Census Bureau will release data on new home sales, a gauge of housing market conditions that measures the number of newly constructed homes with a committed sale during the previous month. The number of sales is expected to increase to 370,000 from last month’s 355,000.
The Reserve Bank of New Zealand will make its interest rate announcement, another key economic event of the week.
Thursday, Jan. 28:
The U.S. Census Bureau will release data on durable goods orders, a leading indicator of economic activity that measures the change in the total value of new orders for durable goods, excluding transportation.
The U.S economic data will continue with the weekly report on jobless claims, an important gauge of conditions in the labor market, which is expected to drop from 482,000 to 450,000.
Also Thursday, Microsoft Corp. reports its second-quarter results.
Friday, Jan. 29:
Eurostat will release the euro zone Consumer Price Index, which measures the changes in the price of goods and services is a preliminary flash estimate of the main measure of inflation in the 16-nation group.
Statistics Canada will then publish data on the Canadian GDP, the main gauge of economic activity and growth.
The U.S. Bureau of Economic Analysis will end the week by releasing its first advanced estimate of the U.S. GDP, a key signal of the economic health of the world’s largest economy, which is expected to rise to 4.50% from 2.20%.
Also Friday, Chevron Corp. reports its fourth-quarter earnings.