Euro keeps falling like a rock after ECB start their rescue mission
After yesterday the ECB press conference gave us what has come to be known as the “Draghi bazooka”, the battered euro has continued its fall and is trading around 11-year lows at the moment, hovering just above the 1.12 level.
This week was just as eventful as the last one with the QE program in Europe being unveiled to the delight of almost everyone in the market. We also had significant movement for the Canadian dollar, as well as the death of the king of Saudi Arabia which pushed oil prices higher.
Earnings season will be picking up the pace next week, with a slew of companies reporting their results.
Sunday 25.1.15 – We’re starting our preview with an event coming this Sunday, as it might impact the euro quite seriously. All eyes will turn to Greece, where a nationalist party is likely to win the election, signalling more strains on its financial status and the relationship between the country and the EU.
Monday 26.1.15 – The results from the Greek election will influence trading on Monday, as well as the start of probably the most active period of earnings reports. Microsoft will be the standout name on Monday, announcing their results after the market closes.
Tuesday 27.1.15 – This will be the day with the largest number of large companies coming out with earnings. Caterpillar, Pfizer and P&G will release them before the open, while Apple, AT&T, Electronic Arts and Yahoo will have their turn after the bell.
Wednesday 28.1.15 – As if the ECB’s QE wasn’t enough for markets, the FOMC will also share their thoughts on Wednesday. It will be the first glimpse into how the Fed is planning to react to the Swiss National Bank’s decision to remove the cap on their currency and the “Draghi bazooka”. Boeing will go with their numbers before the open, while Facebook, Qualcomm and Wynn Resorts are slated for after markets close.
Thursday 29.1.15 – The day of the online giants. Google, Amazon (both after market close) and Alibaba (before the open, so that it can also be seen in a decent hour back in China) will all be reporting on their earnings. Add to that Ford and Visa and we have an eventful day ahead of us, even without all the other things going on.
Friday 30.1.15 – CPI data from the eurozone and the GDP number from Canada will be the main factors in the forex markets, while Chevron and Mastercard will be the big names sharing their financial results for the last quarter.
And here is our selection of articles for your weekend reading on markets and what’s driving them:
The keyword for this week was QE, but what is it exactly. The Telegraph explain in text and moving images (The Telegraph). Opinions are divided on whether it works or not, so this is why we listen to what the political decision-makers have to say on the topic (Financial Times) as well as some of the predictions on where the euro is headed made last October. (Reuters)
Saudi Arabia is one of the largest exporters of oil in the world and the most influential member of OPEC. With a change in power going on there we take a deeper look into the impact of this event through the comprehensive report from the BBC and this article from Zerohedge.
Saving the euro took a bit of the attention reserved for the World Economic Forum in Davos, Switzerland, but we are still keeping an ear out for anything interesting coming from what are thought to be some of the brightest minds around. (Huffingtonpost)
After the global thoughts in the Swiss Alps, we turn to a more philosophical topic about how the global economy is structured right now and how it’s putting a strain on the planet’s resources. Is it time to think of a “circular economy”? (Fortune)
With the Consumer Electronics Show in Las Vegas ending we saw many new technologies that are fast approaching our lives, autonomous cars, the Internet of Things and virtual reality. But are we living in the period with the most innovations? Michael Hanlon says no and points to the 25 years between 1945 and 1971. (Aeon)
Our next article will be online at 4:00pm GMT on Monday – “What Exactly is Forex?”