ECB policy decision and US CPI inflation headline this week
During the upcoming week trading investors look to key interest rate decisions from the European Central Bank and the Bank of Canada, alongside US Consumer Price Inflation data. The European Central Bank monetary policy meeting is set to be a big focus for market participants, following recent comments from ECB members about the euro currency. Traders will be looking for clarifty from ECB President Lagarde.
The US economy also releases important Inflation, Weekly jobs, and Confidence data this, at a time when inflation is a hot topic for financial markets. Traders also look to Gross Domestic Product data from the EU and Japanese economies, and a raft of top-tier economic data from United Kingdom, and key jobs data from the Canadian economy.
Monday 8th March, UK BOE Governor Bailey Speech
The Bank of England Governor, Andrew Bailey, is set to deliver a scheduled speech to market participants, at a time when the UK economy is starting to look in a stronger position after a protracted period of being under lockdown. Governor Bailey took office on March 16th, 2020, at the end of fomer Bank of England Governor, Mark Carney's term. Bailey was serving as the Chief Executive of the Financial Conduct Authority before being designated.
- The GBPUSD pair is only bullish while trading above the 1.3970 level, key resistance is found at the 1.4000 and 1.4200 levels.
- If the GBPUSD pair moves below the 1.3970 level, sellers may test towards the 1.3780 and 1.3600 levels.
Tuesday 9th March, Eurozone Quarterly GDP
Eurozone Gross Domestic Product ris eleased by the Eurostat and is a measure of the total value of all goods and services produced by the Eurozone. The quarterly GDP reading is considered to be a broad measure of eurozone economic activity and health. Usually, a rising trend in GDP has a positive effect on the euro currency, while a falling trend has a negative impact on the euro currency.
- The EURUSD pair is only bearish while trading below the 1.2010 level, key support is found at the 1.1860 and 1.1750 levels.
- If the EURUSD pair moves above the 1.2010 level, key resistance is found at the 1.2060 and 1.2100 levels.
Wednesday 10th March, Bank of Canada Rate Decision
The Bank of Canada Interest Rate Decision is announced by the Bank of Canada, and is closely followed by the central banks latest monetary policy statement. If the Bank of Canada is hawkish about the inflationary outlook of the economy, and rises the interest rates it is positive for the Canadian dollar currency. If the central bank has a dovish view on the Canadian economy and keeps the ongoing interest rate it is seen as negative for the Canadian dollar.
- The USDCAD pair is only bearish while trading above the 1.2740 level, further losses towards the 1.2560 and 1.2400 levels remain likely.
- If the USDCAD pair trades above the 1.2740 level, buyers may test towards the 1.2840 and 1.3000 resistance levels.
Thursday 11th March, ECB Interest Rate Decision
The European Central Bank's interest rate decision is made by the ECB Governing Council on whether to either increase, decrease or maintain interest rates. The key mechanism behind the monetary policy of the ECE is the control of interest rates. After the ECB Interest Rate Decision is announced, the European Central Bank holds a lengthy monthly press conference with ECB President Christine Lagarde, who delivers a prepared statement, and also takes questions from journalists and reporters.
- The EURGBP pair is bullish while trading above the 0.8700 level, key resistance is found at the 0.8860 and 0.8980 levels.
- If the EURGBP pair moves below the 0.8700 level, sellers may test towards the 0.8550 and 0.8400 levels.
Friday 12th March, US Michigan Consumer Sentiment
The Michigan Consumer Sentiment Index is released by the University of Michigan, and is a survey of personal consumer confidence in economic activity. Investors pay attention to the survey as it shows a picture of whether or not consumers are willing to spend money. Generally speaking, a high reading anticipates 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 106.80 level, key support is found at the 105.40 and 105.00 levels.
- If the USDJPY pair trades above the 106.80 level, buyers may test towards the 108.60 and 109.80 resistance levels.