Traders await Chair Powell speech and high impact US data points
US data watch
During the upcoming trading week the United States economy takes center stage as the United States economy releases a number of key data points, while Federal Reserve Chairman Jerome Powell delivers a scheduled speech following last weeks FOMC policy meeting. The United States economy releases important inflation, trade, housing, jobs, and growth data this week. Chair Powell will deliver his most recent thoughts on the US economy after the FOMC opened-the-door for a July rate cut last.
This week we also see a key rate decision from the Reserve Bank of New Zeland and IFO and inflation data from the German economy. Traders also look to GDP data from the United Kingdom economy and the start of the G20 leaders meeting, where President Trump will meet with Chinese President Xi Jinping.
Monday 24th June, EUR German IFO Survey
The German IFO Survey is comprised of three components, the Current Assessment Survey, Business Climate Survey and the Business Expectations Survey. The IFO Survey is a widely observed early indicator of the overall health of the economy. Traders and Investors pay close attention to the IFO Survey, as it can be a leading indicator for current and future trends developing in the German economy.
- The EURUSD is only bearish while trading below the 1.1290 level, key support is found at the 1.1260 and 1.1220 levels.
- If the EURUSD pair moves above the 1.1290 level, buyers will likely test towards the 1.1400 and 1.1500 resistance levels.
Tuesday 25th June, USD FED Chair Jerome Powell Speech
The US Federal Reserve Chair Jerome Powell delivers a scheduled speech on Tuesday, as he lays out his latest thoughts on the United States economy. The Federal Reserve’s current thinking about inflation, jobs, and consumption is taken as a key indicator of the actual health of the United States economy and usually has a sizeable impact on US stocks and the US dollar index.
- The USDJPY pair is bearish while trading below the 108.00 level, key support is found at the 107.00 and 106.40 levels.
- If the USDJPY pair moves above the 108.00, buyers may test the 108.44 and 109.00 resistance levels.
Wednesday 26th June, USD US Durable Goods Orders
US Durable Goods Orders is a government report and is released by the US Census Bureau which measures consumer spending on long-term purchases, products that are expected to last more than three years. Durable goods are generally sensitive to monthly volatility as US consumers may delay purchases of durable items such as cars and televisions and choose to only spend money on necessities in times of economic hardship.
- The USDCHF pair is only bullish while trading above the 1.0000 level, further upside towards 1.0100 and 1.0200 levels remains possible.
- If the USDCHF pair trades below the 1.000 level, sellers are likely to test the 0.9710 and 0.9600 support levels.
Thursday 27th June, EUR German HCIP Index
The German HICP is an index of consumer prices that is calculated and published by Destatis, the Statistical Office of the European Union. HICP is a measure of prices used by the Governing Council of the European Union to define and assess price stability in the euro in quantitative terms. Low European inflation remains a persistent problem for the ECB and may lead to more policy action this year.
- The EURGBP pair is only bearish while trading below the 0.8860 level, further downside towards the 0.8740 and 0.8660 levels seems likely.
- If the EURGBP pair trades above the 0.8860 level, buyers are likely to test towards the 0.8980 and 0.9140 resistance levels.
Friday 28th June, USD US Core PCE
The US Core PCE Index report is greatly valued mainly due to its capability of forecasting inflationary pressures inside the American economy. The Federal Reserve utilizes a measure of inflation resulting from the PCE as their primary gauge of inflation. An overall increase in prices may be derived from an excess take in of these high levels of production and consumption.
- The USDCAD pair is only bullish while trading above the 1.3210 level, further upside towards the 1.3290 and 1.3370 resistance levels seems possible.
- If the USDCAD pair trades below the 1.3210 level, sellers are likely test towards the 1.3120 and 1.3000 support levels.