Market focus

During the upcoming trading week traders and investors look to important interest rate decisions and policy statements from the People’s Bank of China and the Reserve Bank of New Zealand. European Central Bank President Christine Lagarde and Federal Open Market Committee Chairman Jerome Powell are also set to deliver scheduled speeches to market participants this week.

Other highlights on the economic calendar this week include  United Kingdom Growth, Wage, and Employment figures and IFO and GDP data from the German economy. Traders also look to Inflation, Jobs, GDP, Durable Goods, Housing, and Personal Income numbers from the United States economy.

Monday 22nd February, German IFO Survey

The German IFO services is a key German business survey and is made up of three components, Current Assessment, Business Climate, and Expectation. The Institute surveys more than 7,000 enterprises on their assessment of the business situation in Europe’s largest economy. Positive economic growth anticipates bullish movements for the euro currency, while a low reading is seen as negative for the euro currency.

• The EURJPY pair is only bearish while trading below the 124.80 level, key support is found at the 124.00 and 122.80 levels.
• If the EURJPY pair trades above the 124.80 level, buyers may test towards the 127.80 and 129.20 resistance levels.

Tuesday 23rd February, 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 144.60 level, key technical support is found at the 142.80 and 140.00 levels.
• If the GBPJPY pair trades above the 144.60 level, buyers will likely test towards the 147.00 and 148.00 levels.

Wednesday 24th February, RBNZ Rate Decision

The Reserve Bank of New Zealand rate recision is the market interest rate on overnight funds, with the RBNZ standing as the central monetary authority for the New Zealand economy. The Reserve Bank of New Zealand is widely expected to keep interest rates on hold at this meeting, following rate cuts earlier this year. RBNZ policymakers are also tipped to strike an overall dovish tone towards the domestic economy and monetary policy.

• The NZDUSD pair is bearish while trading below the 0.7200 level, key support is found at the 0.7140 and 0.7000 levels.
• If the NZDUSD pair moves above the 0.7200 level, buyers may test towards the 0.7350 and 0.7400 levels.

Thursday 25th February, 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 1.2800 level, key support is found at the 1.2700 and 1.2600 levels.
• If the USDCAD pair moves above the 1.2800 level, buyers will likely test towards the 1.2980 and 1.3100 resistance levels.

Friday 26th February, 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 105.00 level, further losses towards the 104.50 and 104.00 levels remains possible.
• If the USDJPY pair trades above the 105.00 level, buyers are likely to test the 106.30 and 107.30 resistance levels.