Global inflation data releases heavily in focus this week

Inflation outlook

During the upcoming trading week global inflation data takes center stage as we see CPI and PPI data releases from some of the world’s leading economies. The United States CPI inflation report is likely to be the highlight amongst the data releases this week, following Friday’s weak US monthly jobs report. The Chinese, Swiss, Indonesian and eurozone economies will also be releasing key monthly and annual inflation data as the trading week progresses.

This week we also see a rate decision from the SNB, key Jobs and Earnings numbers from the United Kingdom and Retail Sales figures from the United States economy. The Australian economy releases important Unemployment and Employment data, while the Chinese economy releases important Trade, Industrial Production, Import and Export data.

Monday 10th June, Japanese Quarterly GDP Report

The Japanese Quarterly Domestic Product report is released by the Cabinet Office and measures the overall production and consumption of goods and services in Japan for a certain period of time. Japanese GDP is one of the primary indicators of economic well-being for the overall economy and is known to have an impact on the Japanese yen currency. The Japanese economy is expected to have grown by 0.4 percent during the last fiscal quarter.

•  The USDJPY pair is only bullish while trading above the 108.65 level, key resistance is found at the 109.00 and 109.30 levels.
• If the USDJPY pair moves below the 108.65 level, sellers may test towards the 107.40  and 106.60 levels.

Tuesday 11th June, GBP UK Unemployment Rate

The United Kingdom Unemployment Rate is key data release issued 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 only bearish while trading below the 1.2655 level, key support is found at the 1.2600 and 1.2500 levels.
• If the GBPUSD pair moves above the 1.2655 level, key resistance is found at the 1.2800 and 1.2890 levels.

Wednesday 12th June, USD US Consumer Price Index

US Consumer Price Index is released by the US Bureau of Labor Statistics and evaluates the fluctuations in the cost of living by measuring the changes in prices consumers pay for a set of items. CPI is used as the headline figure for inflation, as inflation reflects a decline in the US dollars purchasing power, which means that the US dollar depreciates and is therefore capable of buying fewer goods and services. In terms of an inflation measurement, the Consumer Price Index is the most obvious way to quantify fluctuations in purchasing power.

• The EURUSD pair is only bearish while trading below the 1.1265 level, further losses towards 1.1230 and 1.1200 levels then remain possible.
• If the EURUSD pair trades above the 1.1265 level, buyers are likely to test the 1.1370 and 1.1415 resistance levels.

Thursday 13th June, AUD Australian Unemployment Rate

The Australian Unemployment Rate is released by the Australian Bureau of Statistics and measures the percentage of the total Australian workforce that is currently unemployed and actively seeking employment during the previous month. The figure has a significant impact on the Australian dollar because of the overall importance of employment for the economy.

• The AUDUSD pair is bullish while trading above the 0.6930 level, key resistance is found at the 0.7020 and 0,7110 levels.
• If the AUDUSD pair moves below the 0.6930 level, sellers may test towards the 0.6880 and 0.6850 levels.

Friday 14th June, EUR Eurozone Consumer Price Index

The eurozone Consumer Price Index, released by Eurostat measures the changes in the price of goods and services from the perspective of the consumer. A higher value of the CPI represents significant inflationary pressures in the eurozone economies and also puts pressure on the European Central Bank to raise interest rates. CPI data may not affect the markets significantly because CPI is the European Central Bank's mandated inflation target.

• The EURGBP pair is bearish while trading below the 0.8640 level, key support is found at the 0.8580 and 0.8500 levels.
• If the EURGBP pair trades above the 0.8640 level, buyers may test towards the 0.8910 and 0.9020 resistance levels.