Market focus

During the upcoming trading week, traders and investors are set to remain focused on the United States, as the world’s largest economy releases a raft of high- economic data points. Market participants will be closely focused on the release of US Inflation, Retail Sales, Jobs, Investory, Export and Import data. Investors will look to the release of the Beige Book, which is important to markets as it reveals the thoughts of US policy makers.

Other highlights on the economic calendar this week include a scheduled speech from the Bank of England Governor, Andrew Bailey, and Manufacturing data from the United Kingdom economy. The release of monthly Gross Domestic Product from the UK will also be closely watched this week.

Monday 11th January, 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 central bank is considering negative interest rates and further monetary stimulus. Governor Bailey took office on March 16th, 2020, at the end of former 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 1.3470 level, key resistance is found at the 1.3600 and 137.00 levels.
• If the GBPUSD pair moves below the 1.3470 level, sellers may test towards the 1.3380 and 1.3300 levels.

Tuesday 12th January, US API Weekly Oil Stock

The API Weekly Statistical Bulletin reports the total U.S. and regional data relating to refinery operations and the production of the four major petroleum products: motor gasoline, kerosene jet fuel, distillate, and residual fuel oil. These products represent more than 85 percent of the total petroleum industry.

• The USDJPY pair is only bearish while trading below the 103.50 level, key technical support is found at the 103.00 and 102.60 levels.
• If the USDJPY pair trades above the 103.50 level, buyers will likely test towards the 104.50 and 105.50 levels.

Wednesday 13th January, US Consumer CPI

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 bearish while trading below the 0.6800 level, key support is found at the 0.7000 and 0.7180 levels.
• If the NZDUSD pair moves above the 0.6800 level, buyers may test towards the 0.6650 and 0.6500 levels.

Thursday 14th January, 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 1.2900 level, key support is found at the 1.2530 and 1.2400 levels.
• If the USDCAD pair moves above the 1.2900 level, buyers will likely test towards the 1.3000 and 1.3100 resistance levels.

Friday 15th January

US Retail Sales is released by the US Census Bureau and measures the total receipts of retail stores inside the United States economy. Changes in Retail Sales are widely followed as an indicator of United States consumer spending. Generally speaking, a high reading is seen as positive for the US dollar currency, while a low reading is seen as negative for the US dollar currency.

• The AUDUSD pair is only bullish while trading above the 0.7560 level, key resistance is found at the 0.7700 and 0.7850 levels.
• If the AUDUSD pair holds below the 0.7560 level, sellers may test towards the 0.7460 and 0.7340 levels.