Central banks action dominates the trading action this week
During the upcoming trading week, traders and investors look to key interest rate decisions for the PBOC and the European Central Bank. The ECB meeting comes at a time when the European and global economy is being heavily impacted by the coronavirus lockdown. As ECB President Christine Lagarde delivers her policy address the euro currency could become extremely volatile.
Federal Reserve Chairman Jerome Powell is also expected to testify before US Congress this week. The United States economy also releases important monthly Housing, Manufacturing, and Jobs data
Traders also look to data from the United Kingdom, with the release of UK Jobs, Retails Unemployment, and Inflation data. Traders will also be closely watching CPI inflation data from the Chinese economy and Japanese GDP figures.
Monday 18th May, Japanese GDP
The Gross Domestic Product number for Japan is released by the Cabinet Office, which measures the overall production and consumption of goods and services in Japan for a certain period of time. It is one of the primary indicators of economic well-being. Due to the coronavirus, many leading economists are predicting that the Japanese GDP will have contracted during the last fiscal quarter.
- The EURJPY pair is only bullish while trading above the 122.00 level, key resistance is found at the 124.80 and 126.00 levels.
- If the EURJPY pair moves below the 122.00 level, sellers may test towards the 116.00 and 114.00 levels.
Tuesday 19th May, 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 effects of the coronavirus lockdown is having on the UK economy.
- The GBPJPY pair is only bearish while trading below the 133.00 level, key technical support is found at the 118.00 and 116.00 levels.
- If the GBPJPY pair trades above the 133.00 level, buyers will likely test towards the 135.80 and 138.00 levels.
Wednesday 20th May, 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 1.2420 level, further losses towards the 1.2020 and 1.1800 levels remain likely.
- If the GBPUSD pair trades above the 1.2420 level, buyers may test towards the 1.2550 and 1.2650 resistance levels.
Thursday 21st May, US Manufacturing PMI
The Manufacturing Purchasing Managers Index is released by Markit Economics and is an important indicator of business conditions and the overall economic condition in the US. The US PMI figure is a very important sentiment reading, not only for manufacturing but also for the United States economy as a whole.
- The USDCAD pair is only bearish while trading below the 1.4000 level, key support is found at the 1.2860 and 1.3550 levels.
- If the USDCAD pair moves above the 1.4000 level, buyers will likely test towards the 1.4280 and 1.4400 resistance levels.
Friday 22nd May, 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 106.95 levels.
- If the USDJPY pair trades above the 107.90 level, buyers may test towards the 108.88 and 109.50 resistance levels.xxx