The US dollar index keeps rounding above the 103.60 historical support level. The buyers have already defended this level for three weeks, highlighting their interest in the greenback. Thus, buying USD looks less risky right now.
5 important events this week will bring us!
- US retail sales and core retail sales (Tue, 15:30 MT (12:30 GMT time)) – According to analysts, both headline and core retail sales will advance by 0.1%. Higher figures will boost the USD.
- Speech by the Fed Chair Jerome Powell (Tue, 20:00 MT (17:00 GMT time)) – If Mr. Powell provides supportive comments for the USD this time, the US dollar will go up.
- British CPI (Wed, 11:30 MT (8:30 GMT time)) – The indicator is expected to increase by 2%. If the actual release outperforms the forecasts, the GBP will rise.
- Australian jobs data (Thu, 4:30 MT (1:30 GMT time)) – Analysts anticipate the slowdown in the employment change (from +42.3K last time to +9.1K) and the stable level of the unemployment rate at 5.2%. If the actual figures of employment change are higher and the unemployment rate is lower than the forecasts, the Australian dollar will move up.
- Canadian core retail sales (Fri, 15:30 MT (12:30 GMT time)) – The indicator is forecast to increase by 0.3%. Greater figures will be positive for the loonie.
- After the release of Chinese GDP growth showed the slowdown, reaching only 6.2%, US President Donald Trump tweeted that China wants to make a trade deal soon.
On the H4 timeframe, the US dollar index has formed a bullish falling wedge. At the beginning of the trading session, the price is testing the upper border of this wedge. Thus, in case of a higher-than-expected Core PCE Price Index m/m, the US dollar will skyrocket against other currencies.
Happy Wednesday, traders! We went through the Internet and found the best news for you, take a look!
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.