UNITED STATES AND CHINESE ECONOMIC DATA IN FOCUS
During the upcoming trading week, financial market participants look to important economic data from the world’s two largest economies. The United States economy releases key trade, inflation and GDP numbers, while the Chinese economic releases PMI Manufacturing figures for August. Investors will be watching closely to see if the Trump administrations trade tariffs are starting to have an impact on the Chinese manufacturing sector.
This week we also see the release of the Bank of England inflation report and a raft of top-tier data coming out from the eurozone economy.
Monday 27th August, EUR German IFO Survey
The IFO survey is a closely watched economic survey taken from the German economy and is comprised of key three parts, Business Climate, Current Assessment and Expectations. Due to the German economies large contribution to eurozone job creation and GDP, investors tend to watch the IFO survey closely.
- The EURUSD pair is bullish while trading above the 1.1630 level, key resistance is found at the 1.1700 and 1.1750 levels.
- If the EURUSD pair moves below the 1.1600 level, sellers are likely to test towards the 1.1553 and 1.1410 support levels.
Tuesday 28th August, GBP UK Inflation Report
The Bank of England quarterly Inflation Report represents a detailed account of economic analysis and inflation projections on which the Bank of England’s Monetary Policy Committee bases its interest rate decisions. The BoE inflation report also presents an assessment of the prospects for UK inflation over the following two years.
- The GBPUSD pair is bearish while trading below the 1.2850 level, key support is found at the 1.2770 and 1.2665 levels.
- If the GBPUSD pair moves above the 1.2850 level, buyers may test towards the 1.2910 and 1.3000 levels.
Wednesday 29th August, USD Annualized GDP
GDP Annualized is released by the US Bureau of Economic Analysis and is based on quarterly economic data. Gross Domestic Products is the market value of all final goods and services from a nation, usually calculated on an annual basis. Because most of the report components are known in advance, the GDP reports significance and ability to move markets is usually decreased.
- The USDCHF pair is bullish while trading above the 0.9900 level, further upside towards the 0.9955 and 1.0015 levels seems likely.
- If the USDCHF pair trades below the 0.9900 level, sellers are likely to test towards the 0.9820 and 0.9740 support levels.
Thursday 30th August, USD Core Price Index
The US Core Price Index report is greatly valued mainly due to its capability of forecasting inflationary pressures inside the American economy. A stable Personal Spending figure reflects that US consumers are purchasing goods and services, thus spurring output growth and fueling economic growth.
- The USDJPY pair is bullish while trading above the 111.00 level, further upside towards the 111.39 and 112.05 resistance levels seems possible.
- If the USDJPY pair moves below the 111.00 level, sellers are likely to test towards the 110.55 and 109.80 support levels.
Friday 31st August, CNH Chinese Manufacturing PMI
The Chinese Manufacturing Purchasing Managers Index is released by the China Federation of Logistics and Purchasing and is an economic indicator that measures the activity level of purchasing managers in the manufacturing sector. This months report is significant due to the US government placing trade tariffs on many Chinese goods coming into the US economy.
- The AUDUSD pair is bearish while trading below the 0.7400 level, further downside towards the 0.7310 and 0.7220 levels remains possible.
- If the AUDUSD pair trades above the 0.7400 level, buyers are likely to test the 0.7460 and 0.7515 resistance levels.