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Day Ahead: Top 3 Things to Watch

Published 01/24/2018, 04:58 PM
© Reuters.  What to watch out for in tomorrow's session
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Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow

US Housing, Labor Data

The Commerce Department is slated to report new home sales for December at 10:00AM ET (1400GMT) on Thursday. The data is expected to show a decline of 7.9% to 676,000 units for December from 733,000 units in November.

The Labor department releases its weekly count of the number of individuals who filed for unemployment insurance for the week ended Jan 20. Economist forecast initial jobless claims to rise by 13,000 to 236,000.

Ahead of the duo of reports the dollar, fell sharply against its rivals to 89.02.

Canada Retail Sales

Canadian retail sales due Thursday could offer further insight into the health of the Canadian economy following the Bank of Canada’s decision to raise rates last week.

Economists’ forecasts retail sales rose 0.8% in November, well below the 1.5% growth in the previous month. Retail sales excluding automobiles, so-called core retail sales, is forecast to rise 0.9%.

The CAD/USD has tacked on gains against the dollar recently, supported by a rally in oil prices and expectations for further BoC monetary policy tightening.

ECB Monetary Policy, Draghi Press Conference

The European Central Bank delivers its decision on monetary policy on Thursday and is widely expected to leave interest rates, marginal lending rate and deposit facility unchanged at 0%, 0.25% and -0.4%, respectively.

The ECB’s monetary policy decision will be accompanying by an appearance from ECB president Mario Draghi in a press conference at 08:30ET.

EUR/USD rose 0.89% to $1.2407.

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