January central bank meetings: BoJ, BoC and ECB this week
At the start of every trading week, we comb the upcoming economic calendar for the highest-impact events in the world. Find out what’s coming up next.
Economic calendar summary
The first central bank meetings of 2024 begin this week with the Bank of Japan, Bank of Canada and European Central Bank. While all three banks are unlikely to change interest rates, comments from bank leaders could clarify their 2024 outlooks and when rate cuts are coming.
US data picks up towards the end of the week with Q4 GDP and PCE Price Index arriving Thursday and Friday morning, respectively.
Interest Rate Decision - Japan
Time: 10:00pm ET Monday, January 22nd
Previous: -0.1%
Expected: -0.1%
The Bank of Japan's long awaited pivot from negative interest rates is unlikely to occur at today's meeting. Central bankers remain hesitant whether inflation has reached sustainable growth. Comments from Governor Ueda will hopefully provide clues about the BoJ's optimism and potential timing of a rate hike.
Interest Rate Decision - Canada
Time: 10:00am ET Wednesday, January 24th
Previous: 5.0%
Expected: 5.0%
The Bank of Canada (BoC) is expected to leave rates unchanged on Wednesday following a rise in inflation to 3.4%. US dollar has gained nearly 1.5% against the Canadian dollar year-to-date as USD/CAD trades above 1.3400.
Interest Rate Decision - Euro Area
Time: 8:15am ET Thursday, January 25th
Previous: 4.5%
Expected: 4.5%
While rates are not likely to move at this month's European Central Bank meeting, comments from President Lagarde could clarify the bank's outlook for 2024. Mentions of expected rate cuts could send price action into EUR/USD - currently oscillating around 1.0900.
GDP Growth Rate - US
Time: 8:30am ET Thursday, January 25th
Previous: 4.9%
Expected: 2.0%
The first estimate of GDP growth for Q4 arrives Thursday morning and a big slowdown is expected. However, the forecasted 2% would be a return to consistent levels as Q3's 4.9% growth was the highest reading since 2021.
Core PCE Index - US
Time: 8:30am ET Friday, January 26th
Previous: 3.2%
Expected: 3.0%
The Fed's preferred inflation gauge releases Friday morning ahead of next week's FOMC meeting. A deviation from expecations could shift interest rate cut projections in the US, and send volatility into US dollar pairs.
How to trade economic events
- Open an account to get started, or practice on a demo account
- Choose your forex trading platform
- Open, monitor, and close positions on forex pairs
Trading economic events with forex requires an account with a forex provider like IG. Many traders watch major forex pairs like EUR/USD and USD/JPY for potential opportunities based on economic events such as inflation releases or interest rate decisions. Economic events can produce more volatility for forex pairs, which can mean greater potential profits and losses as risks can increase at these times.
You can help develop your forex trading strategies using resources like IG’s YouTube channel. Our curated playlists can help you stay up to date on current markets and understanding key terms. Once your strategy is developed, you can follow the above steps to opening an account and getting started trading forex.
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