United Kingdom macroeconomic data under scrutiny this week

Inflation and GDP

During the upcoming trading week, the United Kingdom economy is heavily in focus as the UK releases a raft of important data including GDP, Industrial Production, Manufacturing, Retail Sales, Inflation, Wage and Employment. The Reserve Bank of New Zealand rate decision is also a major event this week, with most economists split as to whether the central bank will cut interest rates in November.

The Australian monthly Employment employment report is also a key consideration for traders and could determine whether the Reserve Bank of Australia cut rates in December. FED Jeromy Powell will also testify before US Congress this week, while the United States economy releases key Retail Sales and Consumer Price Inflation figures. 

Monday 11th November, UK Quarterly GDP

UK third-quarter Gross Domestic Product measures the market value of all final goods and services during the period of July 1st until September 31st inside the United Kingdom. Because most of the report components are known in advance, the actual GDP figure is usually well anticipated. Strong growth in quarterly GDP is related to a healthy economy, while weak growth is a cause of concern and may prompt central bank policy action.

• The EURGBP pair is only bullish while trading above the 0.8650 level, key resistance is found at the 0.8700 and 0.8740 levels.
• If the EURGBP pair moves below the 0.8650 level, sellers may test towards the 0.8610  and 0.8550 levels.

Tuesday 12th November, German ZEW Survey

The Center for European Economic Research releases the ZEW survey for financial experts across Europe on a monthly basis in order to create a mid-term forecast in regards to Germany's economic situation. The survey's responses are restricted to positive, negative or unchanged for all components. Due to the simplicity in its structure, the survey is quick and efficient in terms of turnaround time. Experts are also asked for a qualitative assessment of the inflation's direction, interest rates, exchange rates and the general stock market within the following six months.

• The EURUSD pair is only bearish while trading below the 1.1090 level, key technical support is found at the 1.1000 and 1.0960 levels.
• If the EURUSD pair trades above the 1.1090 level, buyers will likely test towards the 1.1150 and 1.1180 levels.

Wednesday 13th November, UK Consumer Price Index

The United Kingdom Consumer Price Index is released by the National Statistics and measures the change in the price of goods and services from the perspective of the consumer. CPI is a key indicator that measures inflation and changes in purchasing trends, therefore CPI figures are closely watched by the Bank of England. A rise in the Consumer Prices Index may determine whether the Bank of England increases interest rates in order to manage inflation and slow economic growth.

• The GBPUSD pair is only bearish while trading above the 1.2880 level, further losses towards the 1.2710 and 1.2650 levels remain likely.
• If the GBPUSD pair trades above the 1.2880 level, buyers may test towards the 1.2920 and 1.2980 resistance levels.

Thursday 14th November, Australian Jobs Report

The Employment Change is released by the Australian Bureau of Statistics and measures the change in the number of employed people in Australia. Generally speaking, a rise in this indicator has positive implications for consumer spending which stimulates economic growth. Therefore, a high reading is seen as positive for the Australian dollar, while a low reading is seen as negative for the Australian dollar.

• The AUDNZD pair is only bearish while trading below the 1.0725 level, key support is found at the 1.0650 and 1.0500 levels.
• If the AUDNZD pair moves above the 1.0725 level, buyers will likely test towards the 1.0770 and 1.0830 resistance levels.                                   

Friday 15th November, US Retail Sales

United States retail Sales is released by the US Census Bureau and measures the total receipts of American retail stores. Monthly percent changes in the headline number reflect the rate of changes in overall retail sales. Changes in the headline number are widely followed as an indicator of consumer spending. Generally speaking, a high reading is seen as positive for the US dollar, while a low reading is seen as negative for the US dollar.

• The USDJPY pair is only bearish while trading below the 108.60 level, key support is found at the 107.90 and 107.50 levels.
• If the USDJPY pair trades above the 108.60 level, buyers may test towards the 109.60 and 110.10 resistance levels.