ECB RATE DECISION HEADLINES THE ECONOMIC CALENDAR
During the upcoming trading week, traders and investors look to the European Central Bank rate decision and monetary policy statement for direction. The ECB is widely expected to keep rates on hold and strike a more cautious towards the EU trading block, as German and French economic indicators are continuing to deteriorate.
Aside from the ECB, we see the release the Bank of Japan deciding on interest rates, key Gross Domestic Product figures from the Chinese and South Korean economies and jobs data from the United Kingdom and Australia. The United States and eurozone economies will also release key PMI manufacturing readings.
Monday, January 21st, EUR German PPI
The German Producer Price Index is released by the Statistisches Bundesamt Deutschland and measures the average changes in prices inside Europe’s largest economy. Changes in the Producer Price Index is widely followed by market participants, as they provide an indicator of commodity inflation. Generally speaking, a high reading is seen as bullish for the euro currency, whereas a lower reading is seen as bearish for the euro currency.
- The EURUSD pair is bearish while trading below the 1.1400 level, key resistance is found at the 1.1300 and 1.1215 levels.
- If the EURUSD pair moves below the 1.1410 level, buyers may test towards the 1.1460 and 1.1550 levels.
Tuesday 22nd January, 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 unsatisfying or has a falling gross domestic product and low unemployment may reflect an expanding economy.
- The GBPUSD pair is bullish while trading above the 1.2810 level, key resistance is found at the 1.2930 and 1.3000 levels.
- If the GBPUSD pair moves below the 1.2810 level, key support is found at the 1.2667 and 1.2500 levels.
Wednesday 23rd January, CAD Canadian Retail Sales
Canadian Retail Sales is released by the Statistics Canada and measure the overall change in the total value of inflation-adjusted sales at the retail level. The figure represents a measure of consumption and consumer confidence in the Canadia economy, as retail trade is an important leading indicator for the overall health of the Canadian economy.
- The USDCAD pair is bearish while trading below the 1.3300 level, further support is found at the 1.3200 and 1.3090 levels.
- If the USDCAD trades above the 1.3300 level, buyers are likely to test towards the 1.3345 and 1.3390 resistance levels.
Thursday 24th October, EUR ECB Press Conference
After the ECB Interest Rate Decision is announced, the European Central Bank holds a lengthy monthly conference with ECB President Mario Draghi delivering a prepared statement. The main points of the conference are inflation and an economic overview and examination of the causes behind the Governing Council’s decision. During the conference, ECB President Draghi answers questions and also gives important clues related to future monetary policy.
- The EURGBP pair is bearish while trading below the 0.8860 level, further downside towards the 0.8760 and 0.8690 support levels seems possible.
- If the EURGBP pair moves above the 0.8860 level, buyers are likely test towards the 0.8930 and 0.9045 resistance levels.
Friday 25th October, USD US Durable Goods Orders
US Durable Goods Orders is a government report, released by the US Census Bureau which measures consumer spending on long-term purchases and products that are expected to last more than three years. Weakening economic conditions causes sales of durable goods to suffer, as consumers may start to delay the purchases of typical durable items such as cars and televisions.
- The USDCHF pair is bullish while trading above the 0.9910 level, further upside towards 1.0055 and 1.0100 levels still remains possible.
- If the USDCHF pair trades below the 0.9910 level, sellers may test the 0.9840 and 0.9750 support levels.