Global inflation in focus alongside US and UK economy data points
Inflation and UK data
During the upcoming trading week, traders and investors look to the release of global inflation numbers and a raft of data from the United Kingdom economy. The German, New Zealand, Canadian and Japanese economies all release important inflation numbers this week. The United Kingdom is also heavily in focus this week, with the release of Jobs, Retail Sales, Unemployment and Inflation data.
The United States economy also releases important monthly Consumer Sentiment, Durable Goods Orders, Existing Homes Sales, Services, Manufacturing. Traders will also be closely watching weekly Job numbers from the United States economy.
Monday 20th April, German Producer Price Index
The German Producer Price Index is released by the Statistisches Bundesamt Deutschland and is a key index that measures the change in prices received by domestic producers of commodities in all stages of processing. This price index is calculated on the basis of a statistical methodology that has been harmonised across all EU member states. German PPI excludes volatile items, such as energy components and seasonal food, in order to provide a more accurate picture of price developments.
- The EURGBP pair is only bullish while trading above the 0.8750 level, key resistance is found at the 0.8900 and 0.9000 levels.
- If the EURGBP pair moves below the 0.8750 level, sellers may test towards the 0.8600 and 0.8550 levels.
Tuesday 21st April, UK Claimant Change
The UK Claimant Change is released by the National Statistics and measures the change in the number of unemployed people in the United Kingdom during the reported period. This figure is not an unemployment indicator it simply measures the number of people claiming benefits. Most analysts are expecting a high number due to the ongoing global lockdown.
- The GBPJPY pair is only bearish while trading below the 133.00 level, key technical support is found at the 131.50 and 130.00 levels.
- If the GBPJPY pair trades above the 133.00 level, buyers will likely test towards the 134.00 and 135.50 levels.
Wednesday 22nd April, 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 1.2480 level, further losses towards the 1.2365 and 1.2300 levels remain likely.
- If the GBPUSD pair trades above the 1.2480 level, buyers may test towards the 1.2610 and 1.2850 resistance levels.
Thursday 23rd April, US Michigan Consumer Sentiment
The Michigan Consumer Sentiment Index is released by the University of Michigan and is a survey of consumer confidence in economic activity. It is an indication of whether or not consumers are willing to spend money. Two versions of this data are released with a two week difference in between; preliminary and revised. The preliminary data generally has a greater impact.
- The EURUSD pair is only bearish while trading below the 1.0870 level, key support is found at the 1.0730 and 1.0630 levels.
- If the EURUSD pair moves above the 1.0870 level, buyers will likely test towards the 1.0980 and 1.1060 resistance levels.
Friday 24th April, Japanese National CPI
The National Consumer Price Index is released by the Statistics Bureau and measures the change in the price of goods and services from the perspective of the consumer. The CPI is a key indicator that measures inflation and changes in purchasing trends, therefore CPI figures are closely watched by the Bank of Japan. Rise of the Consumer Prices Index may determine the BoJ to increase interest rates in order to manage inflation and slow economic growth.
- The USDJPY pair is only bearish while trading below the 107.90 level, key support is found at the 107.45 and 106.80 levels.
- If the USDJPY pair trades above the 107.90 level, buyers may test towards the 108.90 and 109.50 resistance levels.