Sentiment Report - Jan 31, 2017

Posted: 2017-01-31 13:19:00 | Author: Predator Research Predator Research

Top Stories

FOMC - The FOMC will conclude their two day policy meeting tomorrow at 2pm EST. No change in rates are expected but traders will look to the policy statement for changes to the outlook. No press conference associated with this meeting.

With no rate change expected, this is likely to be a non-event and thus has no material impact on sentiment at this time.

Eurozone Data – Improvements in Euro area inflation and employment data are creating a positive sentiment environment for euro denominated assets as the ECB is expected to continue bond-buying despite the improving macro picture.

Euro zone Jan inflation 1.8 pct, highest since Feb 2013
Core inflation stable at 0.9 pct
Euro zone Q4 GDP growth 0.5 pct, as expected
Euro zone Dec unemployment 9.6 pct, more than 7-year low

Overall Sentiment Impact of +1.

Japan – PM Shinzo Abe is scheduled to meet with President Trump on Feb 10 to discuss a trade deal. An early draft of a document, called "U.S.-Japan Growth and Employment Initiative", listed five areas including infrastructure as the focus of negotiation.

Word on the street is that this will be positive for both US and Japan.

Overall Sentiment Impact of +1

Today’s Economic Data Releases




Aggregate Sentiment

Overall we see a slightly positive bias for risk assets with an aggregate sentiment read of +1.

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