Chair Powell and manufacturing data headlines the economic docket this week
During the upcoming trading week, traders and investors look to Federal Reserve Chairman Jerome Powell for direction. Chair Powell is set to deliver a scheduled speech to market participants on Monday, and then testify before the US Congress on Tuesday and Wednesday. The release of the March preliminary manufacturing PMI from the eurozone, German, and United States economies will also be closely watched.
This week we also see an interest rate and policy decisions from the People’s Bank of China and the Swiss National Bank. Other highlights on the economic calendar this week include United Kingdom Growth, Wage, Employment and Inflation data. The United States economy also releases Jobs, GDP, Durable Goods, and Personal Income numbers.
Monday 22nd March, FED Chair Powell Testimony
Federal Reserve Chair Jerome Powell is set to deliver a scheduled speech to market participants on Monday, following the recent FOMC policy decision. Chair Powell will communicate his current thoughts on the United States and global economy, at a time when the FED is still undertaking large-scale bond purchases and the Biden administration is implementing it $1.9 trillion stimulus package.
- The USDCHF pair is only bearish while trading below the 0.9180 level, key support is found at the 0.9140 and 0.9060 levels.
- If the USDCHF pair trades above the 0.9180 level, buyers may test towards the 0.9300 and 0.9400 resistance levels.
Tuesday 23rd March, 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 GBPUSD pair is only bearish while trading below the 1.3960 level, key technical support is found at the 1.4000 and 1.4100 levels.
- If the GBPUSD pair trades above the 1.3960 level, buyers will likely test towards the 1.3780 and 1.3660 levels.
Wednesday 24th March, EU Manufacturing PMI
The EU Manufacturing Purchasing Managers Index is released by Markit Economics and measures the activity level of purchasing managers in the manufacturing sector. The manufacturing PMI is an important indicator of business conditions and the overall economic condition in the eurozone because the manufacturing sector represents nearly a quarter of the total GDP. A reading above 50 indicates expansion in the sector and below 50 indicates contraction.
- The EURUSD pair is only bearish while trading below the 1.1890 level, key support is found at the 1.1840 and 1.1700 levels.
- If the EURUSD pair trades above the 1.1890 level, buyers will likely test towards the 1.2060 and 1.2100 resistance levels.
Thursday 25th March, US Initial Jobless Claims
US Initial Jobless Claims is released by the US Department of Labor on a weekly basis and is a measure of the number of jobless claims filed by individuals seeking to receive state jobless benefits. This figure measures the strength in the United States labour market and is closely followed by both traders and investors.
- The USDCAD pair is only bearish while trading below the 1.2600 level, key support is found at the 1.2400 and 1.2300 levels.
- If the USDCAD pair moves above the 1.2600 level, buyers will likely test towards the 1.2660 and 1.2740 resistance levels.
Friday 26th March, US Core PCE
The Federal Reserve utilizes a measure of inflation resulting from the PCE as their primary gauge of inflation. A stable Personal Spending figure reflects that consumers are purchasing goods and services, thus spurring output growth and fueling the economy. The report is greatly valued mainly due to its capability of forecasting inflationary pressures. An overall increase of prices may be derived from an excess take in of these high levels of production and consumption.
- The USDJPY pair is bearish while trading below the 108.40 level, further losses towards the 108.00 and 107.40 levels remains possible.
- If the USDJPY pair trades above the 108.40 level, buyers are likely to test the 109.30 and 110.00 resistance levels.