ANOTHER BUSY WEEK FOR FINANCIAL MARKET PARTICIPANTS

ECB AND BOE DECIDE

During the upcoming trading week, financial market participants look to key interest rate decisions from the European Central Bank, Bank of England and the Central Bank of Turkey. The ECB and the BoE are widely tipped to keep rates and forward policy guidance unchanged, while Turkish policymakers are expected to hike interest rates in an attempt to stabilize the Turkish lira currency.

The United States is also heavily in focus this week as the world’s largest economy releases key retail sales and inflation data. We also see GDP numbers coming from the Japanese economy and key inflation data being released from the Chinese economy.

Monday 10th September, CNY Chinese CPI

The Chinese Consumer Price Index, released by the National Bureau of Statistics of China, measures the change in the price level of a market basket of consumer goods and services purchased by households. CPI is a key indicator that measures inflation and changes in purchasing trends and closely watched by the PBOC. CPI is one of the most frequently used statistics for identifying periods of inflation or deflation.

• The AUDUSD pair is bearish while trading below the 0.7180 level, key support is found at the 0.7080 and 0.6990 levels.
• If the AUDUSD pair moves above the 0.7180 level, buyers will likely test towards the 0.7230 and 0.7280 resistance levels.

Tuesday 11th September, GBP UK Unemployment Rate

The United Kingdom Unemployment Rate is a figure released by the National Statistics and is calculated by dividing the number of out of work individuals in the labour force, by all individuals currently in the labour force. High unemployment generally indicates that an economy is troubled or has a falling gross domestic product, while low unemployment may reflect an expanding economy.

• The GBPUSD pair is bearish while trading below the 1.2955 level, key support is found at the 1.2863 and 1.2802 levels.
• If the GBPUSD pair moves above the 1.2955 level, key resistance is found at the 1.3040 and 1.3100 levels.

Wednesday 12th September, USD US PPI

The Producer Price Index released by the Bureau of Labor Statistics and the Department of Labor measures changes in the selling prices producers charge for US goods and services and also tracks how prices feed through the production process. PPI is valuable as an early indicator of inflation because producers tend to pass on higher costs to consumers as higher retail prices. It also gives an image of how higher prices from raw materials flow toward the final product.

• The USDCAD pair is bullish while trading above the 1.3110 level, further upside towards the 1.3220 and 1.3290 levels appears likely.
• If the USDCAD pair moves below the 1.3110 level, sellers are likely to test towards the 1.2990 and 1.2840 support levels.

Thursday 13th September, EUR ECB Rate Decision

The European Central Bank is widely expected to keep interest rates and monetary policy unchanged on Thursday. The ECB usually holds a scheduled press conference after the actual ECB interest rate decision, where ECB President Mario Draghi delivers the Governing Council’s latest assessment of the eurozone in regards to how the ECB feels about the EU economy and inflation.

• The EURUSD pair is bearish while trading below the 1.1553 level, further losses towards the 1.1480 and 1.1410 support levels seems possible.
• If the EURUSD pair moves above the 1.1553 level, buyers are likely test towards the 1.1650 and 1.1730 resistance levels.

Friday 14th September, USD US Retail Sales

US Retail Sales measures the total receipts of retail stores and is provided by the US Census Bureau and appears as an annualized percentage change from the previous month. This Retail Sales figure moves the foreign exchange, equity, and bond markets after it is released, primarily due to the importance of consumer spending to the United States economy.

• The USDJPY pair is only bullish while trading above the 110.90 level, further upside towards 111.80 and 112.50 levels remains possible.
• If the USDJPY pair trades below the 110.90 level, sellers are likely to test the 110.60 and 109.55 support levels.