The Week Ahead – Spotlight on China Data by RiosQuant founder Joe Rios

Recently global stock indices have been the primary benchmark for risk assets in the financial markets. Monday through Thursday we witnessed most stock indices retreating after positive economic data releases. However, on Friday following the US jobs report, most US and European stocks (Asian markets were closed) bounced back to regain the losses. US Ten Year Note Yields continue to be trader’s main focus for the Fed’s taper timing. Currency traders are also keened on the correlation between risk currencies and US yields. Take note on the RQ Cross Box trend analysis ranking, last week when the US Ten Year Note was revised to a bearish -4 trend ranking (rising yield), the Euro followed soon thereafter with a bullish 4 ranking and the US Dollar on the Hot List was also revised with a bearish -4 ranking. I expect the high correlation to continue for the rest of December.

Energy commodities finished the week outperforming the major asset classes with Crude Oil gaining 5.5% and Natural Gas 4.5%.

This week’s economic calendar is light, however take special note of economic data from China. I believe the metals will be the asset class to provide trading opportunities in the week ahead.

Sunday
8:30 PM CNY CPI And PPI

Monday
12:15 PM GBP BOE Gov. Carney Speaks
1:05 PM USD FOMC Member Bullard Speaks
7:30 PM AUD NAB Business Confidence

Tuesday
12:30 AM CNY Industrial Production
4:30 AM GBP Manufacturing Production
7:00 AM EUR ECB Precedent Draghi Speaks

Wednesday
10:30 AM Crude Oil Inventories
1:01 PM USD 10 Year Note Auction
2:00 PM USD Federal Budget Balance
3:00 PM NZD RBNZ Rate Statement And Press Conference
7:10 PM NZD RBNZ Gov. Wheeler Speaks
7:30 PM AUD Unemployment Rate

Thursday
3:00 AM EUR ECB President Draghi Speaks
3:30 AM CHF SNB Monetary Policy Assessment
4:00 AM CHF SNB Press Conference
8:30 AM USD Retail Sales And Unemployment Claims
10:30 AM Natural Gas Storage
1:05 PM CAD BOC Gov. Poloz Speaks

Friday
8:30 AM USD PPI

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