Last week was marked by significant economic data reports in global economies as some inflation figures were released, and the markets saw many speeches from some central bank heads. The most important thing on the economic agenda was the passing of the tax bill in the US House and now pending Senate's approval.
This week, we will explore the most important data awaitedby the markets and what is expected of them:
A strong start to the week on Monday
Angela Merkel, the German chancellor, failed to form a coalition over the weekend and said she had tried in every way to ensure the success of the talks, adding that she will inform the German president of the failure of the talks. This news pushed the EURUSD down at the beginning of the week to reach 1.1722, the lowest level since November 14, but currently it managed to erase its losses.
We will not go far from Europe. Today, ECB President Mario Draghi is expected to testify twice before the European Parliament on monetary policy as well as on European systemic risk.
On Tuesday a tour in a number of global central banks
The day starts with the Reserve Bank of Australia's meeting minutes, as it kept rates with no change at the beginning of the month at 1.50%. Governor Philippe Lowe is scheduled to deliver a speech in Sydney on the latest developments in the Australian economy and the global economy.
There will be a hearing before the British Parliament for BoE on the inflation report, which continues to rise recently to its highest level, prompting the Bank of England to raise interest rates.
Janet Yellen, governor of the US Federal Reserve, is due to participate in a panel discussion in New York late on Tuesday.
Wednesday's attention is focused on the FOMC
The UK Autumn forecast statement is expected to be released with updates for economic outlook for the next year. But overnight attention will be focused on the minutes of the FOMC meeting on the recent interest rate decision, and the market has recently priced in rates hike in December by more than 90%.
European PMI will be released on Thursday
On this day, a number of Euro zone purchasing managers' data will be released for the manufacturing and service sectors. The eurozone is witnessing a significant improvement in economic data recently and the European Central Bank is waiting for sustained growth in inflation until it begins to think about ending its monetary stimulus program.
Also, the UK's second GDP estimate is expected to grow by 0.4% in the third quarter of 2017.
