MARKET PARTICIPANTS LOOK TOWARDS KEY US AND EU DATA RELEASES THIS WEEK

Macro Data

During the upcoming trading week financial market participants look to economic data releases from the United States and eurozone economies for direction. The United States economy releases important GDP, Housing, Inflation, Trade, and Consumer Confidence numbers this week. The eurozone economy releases key IFO survey, GDP, and CPI inflation figures.

This week the New Zealand economy also releases high-impacting Trade Balance and Retail Sales data, while the Canadian economy gives a snapshot of the health of its economy with quarterly GDP numbers. Traders will also be focused on the latest news surrounding the coronavirus, and the breakout moves currently underway in gold, the US dollar index, and the Japanese yen currency.

Monday 24th February, German IFO Survey

The German IFO Current Assessment is released by the CESifo Group and is a key indicator of the current business conditions in Germany. The IFO Institute surveys more than seven thousand enterprises across Germany on their assessment of the business situation, and also their short-term business planning.

• The EURUSD pair is bearish while trading below the 1.0880 level, key support is found at the 1.0770 and 1.0730 levels.
• If the EURUSD pair moves above the 1.0880 level, buyers may test the 1.0940 and 1.0980 resistance levels.

Tuesday 25th February, German GDP 

German Gross Domestic Product is one the primary indicators used to evaluate the health of the countries economy. German Gross Domestic Product is usually calculated on a quarterly or annual basis. The GDP figure is realeased by the Statistisches Bundesamt Deutschland and remains a key indicator that market participants pay close attention to.

• The EURJPY pair is only bullish while trading above the 121.50 level, further upside towards the 122.80 and 123.10 resistance levels seems possible.
• If the EURJPY pair trades below the 121.50 level, sellers are likely to test towards the 119.80 and 118.50 support levels.

Wednesday 26th February, New Zealand Trade Balance

New Zealand’s Trade Balance is released by Statistics New Zealand and measures the difference in value between imported and exported goods or services over the reported period. A positive number indicates that more goods and services were exported than imported, and is commonly known as a trade surplus. A negative trade balance shows a trade deficit.

• The NZDUSD pair is bearish while trading below the 0.6380 level, key support is found at the 0.6280 and 0.6200 levels.
• If the NZDUSD pair moves above the 0.6380 level, buyers may test the 0.6430 and 0.6550 resistance levels.

Thursday 27th February, US Durable Goods Orders

US Durable Goods Orders is a government report and is released by the US Census Bureau which measures consumer spending on long-term purchases, products that are expected to last more than three years. Durable goods are generally sensitive to monthly volatility as US consumers may delay purchases of durable items such as cars and televisions and choose to only spend money on necessities in times of economic hardship.

• The USDJPY pair is only bullish while trading above the 110.30 level, key resistance is found at the 112.40 and 113.20 levels.
• If the USDJPY pair trades below the 110.30 level, sellers are likely to test the 109.70 and 109.00 support levels.

Friday 28th February, EU Consumer Price Index

The Consumer Price Index, released by Eurostat measures the changes in the price of goods and services from the perspective of the consumer. A higher value of the CPI represents significant inflationary pressures in the Euro Zone economies. This puts pressure on the European Central Bank to raise interest rates. The data does not usually affect financial markets significantly because CPI is the European Central Bank’s mandated inflation target.

• The EURGBP pair is bullish while trading above the 0.8500 level, key resistance is found at the 0.8600 and 0.8650 levels.
• If the EURGBP pair moves below the 0.8500 level, sellers are likely to test towards the 0.8280 and 0.8200 support levels.