The Fed Meeting has become the highlight of the week. The FOMC released its statement on Wednesday, January 27 at 11:00 am PST. The U.S. Federal Reserve made an attempt to calm the market with a dovish statement after the recent turmoil in global equity markets and weak economic data. Fed funds futures now point to a 90 percent chance of the fed leaving interest rate unchanged at 0.25-0.50 percent.
The Bank of Japan is expected to keep interest rates unchanged at 0 percent this Thursday with speculation that further stimulus programme may be signaled amid at unexpectedly low inflation and the recent appreciation of the Yen.
U.S. GDP will be reported this Friday, with a consensus of slowing economic growth in the fourth quarter and a consensus of 0.8% annualized rate for 2015.
A widening in the trade gap and disappointing inventory data are expected to have held down growth. Personal spending is also expected to have slowed. Recent data suggests that consumer spending and exports have been weak.
Canada will release its fourth quarter GDP data this Friday after the Bank of Canada’s (BoC) kept its benchmark interest rate unchanged at 0.50 percent last week. A consensus forecast of 0 percent growth is expected for the fourth quarter with low oil prices continue to be drag on the economy and limited growth in export despite the loonie hitting a decade low.