MNI Global Week Ahead January 18 - 22

Key Things to Watch:

• Wednesday, January 20 – Bank of Canada Rate Decision
  • The Bank of Canada is expected to leave its key lending rate at a record low 0.25% and maintain QE of at least CAD4 billion a week, with commentary that balances the surge in Covid-19 cases with signs a vaccine will be available sooner than policy makers had expected.

• Thursday, January 21 – ECB Rate Decision
  • Following the boost for the PEPP in December, along with a host of other measures, it is a near certainty that the Governing Council will be on hold.
  • President Lagarde's press conference will focus on how she will address the relative strength of the euro, the December/January lockdowns and the sluggish roll-out of the vaccine program across the EU.

• Thursday, January 21 – U.S. Weekly Jobless Claims
  • U.S. initial jobless claims filed through January 16 are expected to fall to 830,000 from 965,000 through January 6.
• The latest surge in Covid-19 infections has led to renewed business restrictions and shutdowns, triggering more layoffs. Some UI recipients have had to reapply for regular benefits in recent weeks after state programs were paused while federal programs lapsed, which should push initial claims higher in the coming weeks.