United Kingdom economy heavily in focus this week
During the upcoming trading week the United Kingdom economy is heavily in focus, alongside the release of key central bank Meeting Minutes. The United Kingdom economy releases high-impacting Jobs, Unemployment, Manufacturing, Inflation and Retail Sales figures this week. Central bank Meeting Minutes from the Reserve Bank of Australia and the FOMC are also scheduled to be released this week.
Markets attention will also be focused on eurozone PMI data, with particular emphasis on German manufacturing data. The Australian economy will release the nations key monthly Job report, while investors also look to CPI inflation numbers from the United States, Canada and South Korean economies, and a rate decision from the PBOC.
Monday 17th February, Eurogroup Meeting
Eurogroup meetings are attended by the Eurogroup President and the Finance Minister of each Member State of the euro area. The Commissioner for economic and monetary affairs, and the President of the European Central Bank also attend these meetings. The Chairman of the Economic and Financial Committee's Eurogroup Working Group also attends, to present the preparatory work done in that Group.
- The EURUSD pair is only bearish while trading below the 1.0990 level, key support is found at the 1.0800 and 1.0750 levels.
- If the EURUSD pair trades above the 1.0990 level, buyers will likely test towards the 1.1060 and 1.1110 resistance levels.
Tuesday 18th February, UK Claimant Change
The United Kingdom Claimant Change is released by the National Statistics and measures the change in the number of unemployed people in the UK. This claimant figure is not an unemployment indicator, it is simply measures the number of people claiming benefits. The British pound can be heavily effected by a worse or better-than-expected claimant count number.
- The GBPUSD pair is only bearish while trading below the 1.3000 level, key technical support is found at the 1.2960 and 1.2900 levels.
- If the GBPUSD pair trades above the 1.3000 level, buyers will likely test towards the 1.3100 and 1.3170 levels.
Wednesday 19th February, 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 GBPJPY pair is only bearish while trading above the 141.90 level, further losses towards the 140.80 and 139.50 levels remain likely.
- If the GBPjpy pair trades above the 141.90 level, buyers may test towards the 144.30 and 145.10 resistance levels.
Thursday 20th February, Australian Unemployment Rate
The Australian Unemployment Rate is released by the Australian Bureau of Statistics and measures the percentage of the total work force that is unemployed and actively seeking employment during the previous month. The figure has a significant impact on the market because of the overall importance of employment for the economy, and can heavily effect the AUD/USD pair.
- The AUDUSD pair is only bearish while trading below the 0.6680 level, key support is found at the 0.6610 and 0.6550 levels.
- If the AUDUSD pair holds above the 0.6680 level, buyers may test the 0.6750 and 0.6880 resistance levels.
Friday 21st February, German Manufacturing PMI
The German Manufacturing Purchasing Managers Index is released by the Markit economics and captures business conditions in the manufacturing sector. As the manufacturing sector dominates a large part of total GDP, the manufacturing PMI is an important indicator of business conditions and the overall economic condition in Germany. Normally, a result above 50.0 is bullish for the EURUSD pair, while a result below 50.0 is seen as bearish for the EURUSD pair.
- The EURGBP pair is only bullish while trading above the 0.8480 level, further upside towards the 0.8550 and 0.8680 resistance levels seems possible.
- If the EURGBP pair trades below the 0.8480 level, sellers are likely test towards the 0.8200 and 0.8100 support levels.