FINANCIAL MARKETS LOOK TO TRADE DISPUTES AND GLOBAL INFLATION DATA
GLOBAL INFLATION IN FOCUS
During the upcoming trading week market participants turn their attention to global inflation data, with the United States, Chinese and German economies all releasing key CPI inflation data. The recent lack of inflationary pressure in the U.S economy remains a hot topic amongst the Federal Reserve, and this week's CPI and PPI inflation data may influence the FED's upcoming rate decision. Financial markets are also likely to pay close attention to any new rhetoric, or trade tariffs from the U.S and Chinese administrations.
This week we all see Manufacturing and Industrial Production numbers from the United Kingdom, and key monthly Trade data from the Chinese economy. The American economy also releases monthly Consumer Sentiment, Trade and Jolts Job Openings figures.
Monday 9th April, Swiss Unemployment Rate
The Swiss Unemployment Rate, released by the State Secretariat for Economic Affairs, measures the number of people actively looking for a job as a percentage of the labor force inside the swiss economy. The Unemployment rate is released in two headline figures, seasonally adjusted and un-seasonally adjusted.
The USDCHF pair remains bullish while trading above the 0.9560 level, further gains towards the 0.9640 and 0.9730 level seem possible.
Should price-action on the USDCHF pair decline below the 0.9560 level, sellers may test towards the 0.9500 and 0.9460 levels.
Tuesday 10th April, U.S PPI Inflation
The Producer Price Index measures changes in the selling prices producers charge for goods or services, and tracks how prices feed through the production process. The Producer Price Index is valuable to the Federal Reserve as an early indicator of inflation, because producers tend to pass on higher costs to consumers as higher retail prices.
The USDJPY pair remains bullish while trading above the 106.60 level, further upside towards 107.69 and 108.40 seems possible.
Should price-action on the USDJPY pair decline below the 106.60 level, deeper losses towards the 106.00 and 105.25 levels may occur.
Wednesday 11th April, U.S CPI Inflation
The Consumer Price Index, released by the US Bureau of Labor Statistics, evaluates fluctuations in the cost of living by measuring the changes in prices consumers pay for a set of items. The Federal Reserve pays close attention to CPI Inflation, although the Federal Reserve relies on the PCE Deflator as its primary means to determine whether inflation is occurring in the U.S Economy.
The U.S dollar index retains a bullish bias while trading above the 90.00 level, further upside towards the 90.70 and 91.30 region seems possible.
Should the U.S dollar index decline below the 90.00 level for a sustained period, key weekly support is found at the 89.35 and 88.90 levels.
Thursday 12th April, EU Industrial Production
Eurozone Industrial Production, released by Eurostat, measures the volume of production of Industries like factories and manufacturing inside the eurozone. Tracking industrial production is very important for forecasting eurozone GDP changes, most variations in GDP come from the industrial sector. The EU Industrial Production release, comes at a time when Eurozone economy is showing signs of slowing down.
The EURUSD pair remains bearish while trading below the 1.2275 level, further declines towards the 1.2205 and 1.2160 levels seem possible.
Should the EURUSD pair move above the 1.2275 level, buyers may test towards the 1.2314 and 1.2400 resistance levels.
Friday 13th April, German CPI Inflation
The German Consumer Price Index is an index that measures the changes in the price of goods and services purchased by consumers, calculated and published by the Statistiches Bundesamt Deutschland. The Consumer Price Index represents the main indicator to measure inflation, and changes surrounding purchasing trends inside the German economy.
The EURGBP pair remains bearish while trading below the 0.8755 level, further losses towards 0.8680 and 0.8600 seem possible.
Should the EURGBP pair move above the 0.8755 resistance level, further buying towards 0.8810 and 0.8890 remains likely.