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May 21, 2018

FOMC MEETING MINUTES AND UNITED KINGDOM ECONOMIC DATA IN FOCUS

FOMC AND UK DATA

During the upcoming trading week, we see the release of the FOMC Meeting Minutes, and a steady stream of high-impacting economic data from the United Kingdom economy. Traders and investors will be watching the UK CPI, Retail Sales and Q1 GDP releases closely this week, as the United Kingdom economy has recently posted much weaker than expected economic numbers.

We also see the release of key German GDP figures and the ECB Monetary Policy Meeting Accounts, which details the latest meeting of the ECB Board, and provides a valuable indication of economic conditions that influenced the ECB's previous policy decision. FED Chair Jerome Powell also delivers a scheduled speech, while the United States economy releases key monthly Consumer Confidence and key Durable Goods Order data.

Monday 21st May, Japanese Exports

After recently posting much weaker than expected Inflation and first fiscal quarter GDP data, the release of Japan’s Export data will be closely watched by traders and investors. Japanese export data is collated and released by the Japanese Customs service and represents the transactions of all exported goods and services from residents to non-residents within the Japanese economy.

  • The USDJPY pair is bullish while trading above the 110.00 level, further upside towards the 111.10 and 111.80 levels seems possible.

  • If the USDJPY pair declines below the 110.00 level, sellers are likely to test the 109.60 and 108.85 support regions.

Tuesday May 22nd, UK Public Sector Net Borrowing

UK Public Sector Net Borrowing measures the amount of new debt held by the United Kingdom government. In the long run, the public-sector account must be in balance, in order for the economy to be sustainable. If the United Kingdom economy spends more than what it actually earns, it must finance this budget deficit with an increase in Net Borrowing.

  • The GBPUSD pair is strongly bearish while trading below the 1.3500 level, further losses towards the 1.3400 and 1.3300 levels may occur.

  • If the GBPUSD pair trades above the 1.3500 level, buyers may test towards the 1.3568 and 1.3606 levels.

Wednesday 23rd May, U.S FOMC Meeting Minutes

The Federal Open Market Committee Meeting Minutes gives insight into the monetary policy decision-making process of the FOMC, and the economic developments that led to the FOMC’s members to keep US rates on hold at their previous meeting. The Federal Open Market Committee organizes eight meetings in one calendar year, and each meeting gives a clear guide into future United States interest rate policy.

  • The USDCHF pair is strongly bullish while trading above the 0.9800 level, further upside towards 0.9980 and 1.0048 appears possible.

  • If the USDCHF pair declines below the 0.9800 level, sellers are likely to test the 0.9740 and 0.9680 support regions.

Thursday 24th May, Eurozone GDP Inflation

The Gross Domestic Product of the German economy is one of the primary indicators used to evaluate the health of the economy, and is calculated on a quarterly and annual basis. Germany’s Gross Domestic Product is released by the Statistisches Bundesamt Deutschland, and is watched closely by the central bank of Germany.

  • The EURGBP pair is bearish while trading below the 0.8780 level, further downside towards 0.8700 and 0.8650 seems possible.

  • If the EURGBP pair moves above the 0.8780 level, buyers may test towards the 0.8800 and 0.8960 levels.

Friday 25th May, US FED Chair Powell Speech

Federal Reserve Chairman Jerome Powell delivers a scheduled speech on Friday, at a time when the US dollar and US Treasury bond yields are rising. US traders and investors will listen closely to Chair Powell’s speech for any hints about future US interest rate increases, and his current thoughts about the United States economy.

  • The USDCAD pair is only bullish above the 1.2900 level, key resistance is found at the 1.3000 and 1.13124 levels.

  • If the USDCAD pair fails to move above the 1.2900 level, key support is then found at the 1.2800 and 1.2732 levels.

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