Range Markets

During the upcoming trading week, the release of Chinese growth figures and EU Consumer Price Index and Producer Price Index inflation data is likely to set the tone for financial markets. Traders and investors will also be closely monitoring the ongoing United States coronavirus stimulus package negotiations, and also reacting to British PM Boris Johnson’s comments over Brexit.

Other important events on the economic calendar this week include the release of United Kingdom Retail Sales figures, and US Manufacturing and Jobs numbers. Market participants will also be looking forward to another US Presidential Debate this week.

Monday 19th October, CNY Chinese GDP

Chinese quarterly Gross Domestic Product is released by the National Bureau of Statistics of China and measures the national income and output for the world’s second-largest economy. Chinese GDP is equal to the total expenditures for all final goods and services produced within the country in a stipulated period of time. It is also considered the primary indicator of the Chinese economy’s health.

  • The AUDUSD pair is only bullish while trading above the 0.7060 level, key resistance is found at the 0.7200 and 0.7350 levels.
  • If the AUDUSD pair holds below the 0.7060 level, sellers may test towards the 0.6960 and 0.6840 levels.

Tuesday 20th October, EUR German PPI

The Producer Price Index released by the Statistisches Bundesamt Deutschland is an index that measures the change in prices received by domestic producers of commodities in all stages of processing.This price index is calculated on the basis of a statistical methodology that has been harmonised across all EU member states. German PPI excludes volatile items, such as energy components and seasonal food, in order to provide a more accurate picture of price developments.

  • The EURUSD pair is only bearish while trading below the 1.1740 level, key support is found at the 1.1600 and 1.1500 levels.
  • If the EURUSD pair moves above the 1.1740 level, buyers may test towards the 1.1800 and 1.1850 levels.

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Wednesday 21st October CAD Canadian Core CPI

The Canadian Consumer Price Index Core is released by the Bank of Canada and is a method for measuring core inflation. Core CPI excludes energy and food prices, as these prices can be very volatile. Core CPI is considered by market participants to be the most important indicator of inflation for the Canadian economy. An increase of CPI can stimulate the central bank to raise interest rates in order to manage inflation and slow economic growth.

  • The USDCAD pair is only bearish while trading below the 1.3200 level, further losses towards 1.3100 and 1.3000 levels remain possible.
  • If the USDCAD pair trades above the 1.3200 level, buyers are likely to test the 1.3310 and 1.3350 resistance levels.

Thursday 22nd October, 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 overall strength in the United States labour market and is closely followed by both traders and investors.

  • The USDJPY pair is only bearish while trading below the 105.80 level, key support is found at the 104.60 and 104.00 levels.
  • If the USDJPY pair moves above the 105.80 level, buyers will likely test towards the 106.10 and 106.10 resistance levels.

Friday 23rd October, UK Retail Sales

United Kingdom Retail Sales is released by the National Statistics and measures the total receipts of retail stores in the UK. Changes in Retail Sales are widely followed as an indicator of consumer spending and are closely watched by traders and the Bank of England. Generally speaking, a high reading is seen as positive, or bullish for the British pound currency, while a low reading is seen as negative or bearish for the British pound currency.

  • The GBPUSD pair is only bearish while trading below the 1.3000 level, key support is found at the 1.2850 and 1.2700 levels.
  • If the GBPUSD pair trades above the 1.3000 level, buyers will likely test towards the 1.3080 and 1.3140 resistance levels.

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