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
- American Quarterly GDP Growth Rate 2nd Est, Consumer Spending data, Durable Goods Orders (Wed, 15:30 MT time (13:30 GMT)) – U. S. consumer spending data is due Wednesday, along with GDP, jobless claims and durable goods. The forecast for the quarterly GDP growth rate is 1.9%. Higher-than-expected index values will boost the US dollar.
- European Business Confidence index (Thu, 12:00 MT time (10:00 GMT)) – The previous level of the indicator was -0.19, while the expectation for the coming one is -0.24. The euro will gain strength if the actual indicator is higher than the forecast.
- British GfK Consumer Confidence (Fri, 02:01 MT time (00:01 GMT)) – The forecast for the British Consumer Confidence index is -14. If the actual one outperforms that, the British Pound will be supported.
- Japanese Consumer Confidence (Fri, 07:00 MT time (05:00 GMT)) – The Japanese Consumer Confidence index is expected to show a slightly lower 35.4 value against the previous 36.2. If the indicator outperforms the prognosis, the Japanese yen will rise.
- Canadian Monthly GDP Growth Rate (Fri, 15:30 MT time (13:30 GMT)) – The analysts expect the monthly GDP growth rate in Canada to show a slightly better 0.2% against the previous 0.1%. If the actual level is higher than the forecast, the Canadian dollar will go up.
- Boris Johnson presented his election manifesto to the British Parliament on Sunday. He advised it is a “radical agenda” for the United Kingdom, and promised to present the Brexit agreement to the Parliament until December 25.
- China is strengthening intellectual property rights protection, as was revealed on Sunday. The equity markets in Asia have already shown a rise partly due to this advancement within the US-China trade talks.
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.