US CPI inflation headlines the economic docket this week
During the upcoming trading week the release of United States Consumer Price Inflation data is the main event on the economic docket that traders and investors will be watching out for. Market participants will be looking closely for signs of increasing inflationary pressure in the US economy as commodity prices continue to surge. The release of United States Retail Sales and Consumer Sentiment data will also be closely followed this week.
Other highlights on the economic calendar include Chinese CPI data, US Weekly Jobs numbers, and Australian monthly retail salesfigures. Bank of England Governor Andrew Bailey will also be delivering a series of scheduled speeches this week, following last weeks slightly hawkish Bank of England policy meeting.
Monday 10th May, Australian Retail Sales
The Retail Sales released by the Australian Bureau of Statistics is a survey of goods sold by retailers is based on a sampling of retail stores of different types and sizes and it's considered as an indicator of the pace of the Australian economy. It shows the performance of the retail sector over the short and mid-term. Positive economic growth anticipates a bullish trend for the Australian dollar, while a low reading is generally seen as negative or bearish for the Australian dollar.
- The AUDUSD pair is only bullish while trading above the 0.7800 level, key resistance is found at the 0.8000 and 0.8170 levels.
- If the AUDUSD pair moves below the 0.7800 level, sellers may test towards the 0.7750 and 0.7690 levels.
Tuesday 11th May, German ZEW Survey
The Center for European Economic Research releases the ZEW survey for financial experts across Europe on a monthly basis in order to create a mid-term forecast in regards to Germany's economic situation. The survey's responses are restricted to positive, negative or unchanged for all components. Due to the simplicity in its structure, the survey is quick and efficient in terms of turnaround time.
- If the EURUSD pair trades above the 1.2080 level, buyers may test towards the 1.2260 and 1.2400 resistance levels.
- The EURUSD pair is only bearish while trading above the 1.2080 level, further losses towards the 1.2000 and 1.1890 levels remain likely.
Wednesday 12th May, US Consumer Price Index
The Consumer Price Index is released by the US Bureau of Labor Statistics and evaluates fluctuations in the cost of living by measuring the changes in prices consumers pay for a set of items. CPI is used as the headline figure for inflation, which means that the dollar depreciates in value and each dollar is capable of buying fewer goods and services. In terms of an inflation measurement, CPI is the most obvious way to quantify fluctuations in purchasing power.
- The NZDUSD pair is only bearish while trading above the 0.7200 level, further losses towards the 0.7100 and 0.7050 levels remain likely.
- If the NZDUSD pair trades above the 0.7200 level, buyers may test towards the 0.7370 and 0.7440 resistance levels.
Thursday 13th May, 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 labor market and is closely followed by both traders and investors. Market participants will be watching this number closely after last weeks weaker-than-expected Non-farm Payroll jobs report.
- The GBPUSD pair is bullish while trading above the 1.3880 level, key resistance is found at the 1.4150 and 1.4200 levels.
- If the GBPUSD pair moves below the 1.3880 level, sellers may test towards the 1.3670 and 1.3560 levels.
Friday 14th May, US Consumer Sentiment
The Michigan Consumer Sentiment Index released by the University of Michigan is a survey of personal consumer confidence in economic activity. 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 currency, while a low reading is seen as negative for the US dollar currency.
- The USDCHF pair is only bearish while trading below the 0.9125 level, key support is found at the 0.9000 and 0.8980 levels.
- If the USDCHF pair trades above the 0.9125 level, buyers may test towards the 0.9230 and 0.9400 resistance levels.