During the first week of 2019, the markets witnessed very strong volatility, and this week is preparing for a number of important economic data and events that will also affect the movements of financial markets.
US officials are due to go to Beijing to resume talks between the two sides to end their trade dispute in 2018 as US President Donald Trump seeks to narrow the trade gap deficit between the United States and China. During their talks on the sidelines of the recent G-20 summit in Buenos Aires, both sides agreed to a 90-day trade tariff truce.
Also, the markets are waiting for the FOMC meeting minutes of at the end of 2018, in which the Federal Reserve raised interest rates for the fourth time, and referred to further rate hikes in 2019. Federal Reserve Chairman Jerome Powell said last week that the performance of the economy will be monitored; and monetary policy will be adjusted based on it. Powell is scheduled to speak again this week in Washington.
Eyes will also be headed to inflation data in the US; the CPI is expected to rise by 2.2% on yearly basis in December.
The British Parliament is due to return from the Christmas holidays this week, and it is awaited that the Brexit agreement reached by British Prime Minister Theresa May for voting on January 14 three months before the leaving the EU by the end of March.
This week, the Bank of Canada interest rate is also being in focus as it is widely expected to keep interest rates unchanged at 1.75%. At its most last meeting in 2018, the central bank indicated that it would pursue a gradual rate hike based on economic conditions.
