Inflation and global growth data on the agenda this week
During the upcoming trading week financial markets will digest a slew of high-impacting financial data, with global growth numbers headlining the economic docket. Traders look to Gross Domestic Product data from the United Kingdom, Germany, Japan and the European Union. Market participants will also look to the release of Chinese, United States, Swiss, and EU inflation numbers, and a key rate decision from the Reserve Bank of New Zealand.
The United States economy is also heavily in focus, with a key testimony from FED Chair Jerome Powell and the release of monthly Retail Sales, Jobs, Industrial Production, Trade, and Consumer sentiment data.
Investors will also be closely monitoring the latest developments surrounding the coronavirus, as it continues to spread across the globe and effect economic activity in China.
Monday 10th February, Chinese CPI Inflation
The Consumer Price Index isreleased by the National Bureau of Statistics of China and 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. CPI inflation is one of the most frequently used statistics for identifying periods of inflation or deflation.
- The USDJPY pair is only bullish while trading above the 109.40 level, key resistance is found at the 110.00 and 111.00 levels.
- If the USDJPY pair trades below the 109.40 level, sellers are likely to test the 109.00 and 108.30 support levels.
Tuesday 11th February, UK Q4 GDP
UK Gross Domestic Products is the market value of all final goods and services from the United Kingdom. It is noteworthy that UK Gross Domestic Product is calculated on a monthly , quarterly, and annual basis. Because most of the report components are known in advance, the actual GDP figure is usually well anticipated. A vigorous growth of GDP is related to a healthy economy.
- The GBPUSD pair is bearish while trading below the 1.3030 level, key support is found at the 1.2840 and 1.2710 levels.
- If the GBPUSD pair moves above the 1.3030 level, buyers may test the 1.3100 and 1.3170 resistance levels.
Wednesday 12th February, US Consumer Price Index
The Consumer Price Index is released by the US Bureau of Labor Statistics and measures the changes in US inflation. The CPI index calculates fluctuations in the cost of living by measuring the changes in prices consumers pay for a set of items. CPI inflation reflects a decline in the US dollars' purchasing power, which means that the US dollar depreciates in value and each dollar is capable of buying fewer goods and services.
- The USDCHF pair is only bullish while trading above the 0.9740 level, further upside towards 0.9840 and 0.9910 levels remains possible.
- If the USDCHF pair trades below the 0.9730 level, sellers are likely to test the 0.9650 and 0.9510 support levels.
Thursday 13th February, German CPI Inflation
The German CPI is an index that measures the changes in the price of goods and services purchased by consumers, calculated and published by he Statistiches Bundesamt Deutschland. The Consumer Price Index represents the main indicator to measure inflation and changes in purchasing trends. Rising German CPI inflation is usually seen as bullish for the euro currency, while failing CPI inflation is seen as a negative for the euro.
- The EURUSD pair is only bullish while trading above the 1.1060 level, further upside towards the 1.1100 and 1.1170 resistance levels seems possible.
- If the EURUSD pair trades below the 1.1060 level, sellers are likely to test towards the 1.0900 and 1.0840 support levels.
Friday 14th February, US Retail Sales
US Retail Sales measure the total receipts of retail stores and is provided by the US Census Bureau, and appears as the annualize percentage change from the previous month. Retail Sales are seen as an important indicator because they show the current sentiment of US consumers, which is closely linked with the general health of the US economy. Due to seasonality, the headline figure may be positive one month, and subsequently revised lower the next month.
- The USDCAD pair is bullish while trading above the 1.3200 level, key resistance is found at the 1.3380 and 1.3445 levels.
- If the USDCAD pair moves below the 1.3200 level, sellers are likely to test towards the 1.3150 and 1.3080 support levels.