There are several economic events happening this week. Today Japan’s House of Councillors will conduct hearings on the government’s nominations for the next BoJ leadership and the most likely candidate will be Weda, who o9is keeping Kuroda’s line after the murder of the previous PM Shinzo Abe. The confirmation hearings for the next BoJ leadership in Japan are widely seen as rubber stamp procedures. Tomorrow we have Canada’s GDP report for December, which is expected to fall flat at 0.0%, although that’s old news so not much impact is expected for the CAD. The recent GDP update in Canada implies a Q4 increase of around 1.6% in annualized rate terms.

On Wednesday, Australia’s consumer inflation and GDP numbers will be released, and China’s official manufacturing and services PMI reports will be released soon after. They are expected to show a nice jump into expansion this month as China reopens from 3 years of restrictions, which would improve the sentiment for crude Oil.

The Australian GDP for Q4 is expected at 0.7% and should provide the latest insight into the health of the economy and if there is a further impact on growth from the central bank’s ongoing tightening cycle. The monthly CPI from Australia is likely to remain elevated despite a cool-off from 8.4% to 8.1%, while the GDP data is likely to be influenced by base effects.

The US ISM manufacturing PMI is expected to show a slight improvement further down the week but remain in contraction below 50 points. ISM services PMI are expected to keep the pace of expansion this month after the jump in January, despite a small slowdown. The Eurozone headline CPI inflation is expected to post a small cool-off as well but it still remains high above 8% and the previous month was revised higher for both the core and headline numbers.

EUR/USD Live Chart