Global macro overview for 09/01/2017

Global macro overview for 09/01/2017:

The most important economic events on the market this week:

- Some of the FOMC members are scheduled to speak this week. Boston Fed President Eric Rosengren will deliever his speech on Monday at 02:00pm GMT. That same evening appearance of Dennis Lockhart, President of the Atlanta Fed, is expected at 05:45pm GMT. On Thursday Fed Chairperson Janet Yellen together with Charles Evans will give a speech in Washington DC at 01:30pm GMT, while Denis Lockhart and Robert Kaplan will appear at 05:30pm GMT and 06:45pm GMT correspondingly.

- In the context of inflation, on Thursday markets will closely follow the minutes of the December meeting of the European Central Bank. Investors hope to get more clues on the shape of the bond buying program and easing monetary policy in 2017- 2018. The discussion of the ECB Governing Council on lowering the rate of assets purchases to 20 billion euros per month starting from April will also be in focus.

- On Friday, the report of the Canadian rating agency DBRS will be under the spotlight. The agency will review the assessment of Italy's creditworthiness. Along with the so-called "big three" (Moody's, Fitch, and S&P), DBRS's ratings are taken into account by the ECB.

- And last, but not least: US President-elect Donald Trump twitted last week that next Wednesday he will hold a press conference to discuss "general affairs". This will be the first official Trump's press conference since he won the presidential election in the US.

Let's now take a look at the EUR/USD technical picture on the 4H time frame. The market is trading around the weekly pivot at the level of 1.0508, roughly in the middle of the trading range. The longer term is still bearish, but the growing bullish divergence is indicating a temporary rally towards the level of 1.0669 min.