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.
Market updates on August 27
Key events ahead:
CB Consumer confidence – 17:00 MT (14:00 GMT)
- On H4, the USD/JPY pair has been falling after the test of the 100-period SMA. The price has reached the 105.64 level. If it manages to break it, the next support will lie at 105.51. After that, the retest of the 105.27 level seems possible. In case of a more risky environment, bulls will try to push USD/JPY higher, where the resistance at 106.23 lies. The next level in focus of bulls will be placed at 106.4.
- EUR/USD has been trading with low volumes during the Asian trading session. On the H4, it has been testing the 2-week resistance at 1.1106. If bulls break this level, we will focus on the next resistance, which lies at 1.1137. If the USD gets stronger today on the release of CB consumer confidence, the pair will fall below the 50-period SMA at 1.1098 level. After that, the next support will be placed at 1.1088. If that level is broken, too, keep an eye on the support at 1.1077.
- The cable got support after the comments by the Labour lawmaker Keir Starmer that a no-deal Brexit will be prevented. GBP/USD has risen to the 1.2250 level on H4. If buyers are strong enough to break the current level, the next resistance will lie at 1.2272 (200-period SMA). Sellers will be focused on the breakout of the 1.2211 level. In that case, the next support will lie at 1.2171.
- Gold retested the $1,535 level. In case of risk aversion, the price will likely break the current resistance and target the next key level at $1,555. The near-term target for sellers will lie at $1,525 (50-hour SMA). After that, it is recommended to keep an eye on the $1,508.8 level.
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.
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.
The Reserve Bank of Australia (RBA) will make a statement and release a Cash Rate on February 7, 05:30 GMT+2. It's among the primary tools the RBA uses to communicate with investors about monetary policy.
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.