Forex fundamental analysis and economic calendar review (23 to 27 January)

Forex fundamental analysis

In fundamental analysis the most important economic news and data and its impact on the forex market and other markets, is reviewed and analyzed.
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In this fundamental analysis, the most important events, news, and economic data for important currencies and assets of the forex market and their effect on the overall market trend are reviewed from 23 to 27 January.

A review of last week's important events 

Last week, most of the traders were observing the JPY economic data and news. While many traders expected the Japanese central bank to back off its expansionary policies, the bank still emphasizes expansionary policies and that is why JPY became very weak at the time of the news release. Given the upcoming election of the BOJ chairman (unlike the current head, the majority of candidates are pursuing contractionary policies) and the rise in inflation in this country, analysts and traders expect the BOJ to back out of expansionary policies and raise the interest rate from negative to zero or positive rates in 2023.

For the US dollar, due to the Federal Reserve members' silence before setting the interest rate in the meeting on February 1, the Federal Reserve members' remarks this week were of interest to the market.
The Federal Reserve members' remarks were more indicative of Dovish policies. Referring to the 0.25% interest rate increase and the weak data release on the US dollar caused this currency's value to decrease in related symbols.

The economic calendar review from January 23 to 27

In this week's economic calendar review, the important data and events are related to the CAD and USD currencies, which we will discuss further.


This week, at 3 PM (UTC) on Wednesday, Canada's Central Bank will announce the country's monetary policy and set the interest rate.
It is predicted that the BOC interest rate will increase by 0.25% from 4.25% to 4.5%. Also, at 2 PM on the same day, the BOC press conference will be held. It is expected that after the mentioned events, there will be good trading opportunities in the symbols related to CAD.

Often the BOC policies have been ahead of the other banks' policies. It seems that this bank will be the first to reach its final rate, and after that, it will start reducing the interest rate. Therefore, it is possible to emulate the BOC policies and predict the other central banks' movement, including the Federal Reserve.


Given that the Federal Reserve meeting is next week and data such as the inflation rate, employment report, etc., which are of interest to the Federal Reserve and the market, have already been released, it is unlikely that this week's data, despite its importance, will change the market's viewpoint unless the data is released with a big difference from forecasts.

On Tuesday at 02:45 PM, the Flash service PMI for January (Previously: 44.7 | Forecast: 45) and the Flash manufacturing PMI will be published.

On Thursday at 01:30 PM, important data such as the Advance GDP q/q, unemployment claims, and the December Core durable goods orders index will be released.

On Friday at 01:30 PM, various inflation and Core PCE price indices m/m & y/y will be released.

Other currencies

On Tuesday at 08:15 AM, 08:30 AM, and 09:00 AM, European countries' PMI indices will be published. And for Euro on Wednesday at 09:00 AM, the German Ifo business climate index (prev: 88.6 | Fore: 90.2) will be released.

On Tuesday at 09:30 AM, England's Flash Manufacturing and Services PMI index will be published.

On Tuesday at 09:45 PM, New Zealand's CPI q/q (prev: 2.2% | fore: 1.3%), and on Wednesday at 12:30 AM, Australia's CPI q/q & y/y (prev: 1.8% | fore: 1.6%) will be released, which can cause Good volatility in related currency pairs.


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