Morning, Traders!
It is Tuesday the 31st of January, and the slew of US data begins today.
Here are some things to look out for.
Sentiment
This morning, the dollar rose to a one-week high, aided by haven demand as European stocks fell.
Currency pairs are trading in tight ranges as investors brace for a hawkish surprise from the Federal Reserve, which is widely expected to raise interest rates by 25 basis points on Wednesday.
The euro has recovered some of its losses as data showing that the eurozone economy grew at the end of last year reduces recession risks and strengthens expectations that the ECB will raise rates by 50 basis points on Thursday and push for further tightening.
US treasuries rose slightly, led by gains in longer-dated maturities.
If more evidence of cooling inflation comes in after the Fed's March meeting, officials may consider pausing interest rate hikes, according to analysts.
Most economists and market participants think the Fed will reduce its rate hike to 25 basis points on Wednesday.
Fed Chair Jerome Powell will most likely signal that the Fed is still on track to raise rates to a peak of 5.25% and that policymakers do not anticipate any rate cuts this year.
The International Monetary Fund sees a turning point in the global economy after raising its growth forecast for the first time in a year, citing resilient US spending and China's reopening as bolstering demand against a slew of risks.
According to a senior IMF official, global central banks must not stop raising interest rates until it is absolutely clear that inflation is permanently declining.
Docket
8:30 AM ET
Canadian GDP MoM for November
Median Forecast: 0.1% | Prior: 0.1% | Range: 0.1% / 0%
9:00 AM ET
US CaseShiller 20 YoY for November
Median Forecast: 6.8% | Prior: 8.6% | Range: 7.5% / 5.8%
Measures the change in price for single-family homes in 20 major us metropolitan areas.
10:00 AM ET
US CB Consumer Confidence for January
Median Forecast: 109 | Prior: 108.3 | Prior: 112.5 / 105
4:45 PM ET
New Zealand Employment Data for Q4
Labour Cost Index QoQ - Median Forecast: 1.2% | Prior: 1.1% | Range: 1.2% / 0.9%
Unemployment Rate - Median Forecast: 3.3% | Prior: 3.3% | Range: 3.6% / 3.1%
Earnings
4:10 PM ET
Snap Q4 2022 Earnings
Estimated EPS: 11c
Estimated Revenue: $1.305 bln
4:15 PM ET
AMD Q4 2022 Earnings
Estimated EPS: 66c
Estimated Revenue: $5.516 bln
Good luck!