Range Markets

CPI headlines

During the upcoming trading week, the release of United States Consumer Price Inflation data is the major event on the economic docket. Market participants will be looking for signs of inflation as the US economic outlook is starting to improve on the manufacturing and jobs side. The release of Gross Domestic Product data from the United Kingdom economy is an important event on the economic calendar traders will be watching this week.

Other highlights on the economic calendar include The Reserve Bank of New Zealand interest rate decision, Chinese CPI inflation, US Weekly Jobs data, US Sentiment and EU Sentiment data. US earnings seasons and the latest news over the $1.9 trillion US stimulus package will also be closely watched this week.

Monday 8th February, EU Sentix Investor Confidence

The European Sentix Investor Confidence report is released by the Sentix GMBH and is considered an important monthly gauge of current business conditions amongst the eurozone members, and for the overall expectations for the next semester. The index is composed of thirty-six different indicators and is closely watched by global economists, analysts, and investors.

  • The EURJPY pair is only bullish while trading above the 126.40 level, key resistance is found at the 128.50 and 130.00 levels.
  • If the EURJPY pair moves below the 126.40 level, sellers may test towards the 125.80 and 124.95 levels.

Tuesday 9th February, US JOLTS Job Survey

The Job Openings and Labor Turnover Survey, known as JOLTS, is a survey that is published every month by the US economy. The survey examines the job market and collects information from employers from more than 15,000 workplaces across the United States in different industries that are unrelated to agriculture. The survey collects numerical and qualitative data and concerns hire, job openings, layoffs, separations, resignations, and recruitments.

  • The USDJPY pair is only bearish while trading below the 104.80 level, key support is found at the 104.50 and 104.10 levels.
  • If the USDJPY pair moves above the 104.80 level, key resistance is found at the 105.80 and 106.30 levels.

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Wednesday 10th February, US Consumer Price Index

The Consumer Price Index is released by the US Bureau of Labor Statistics and evaluates fluctuations in the cost of living by measuring the changes in prices consumers pay for a set of items. CPI is used as the headline figure for inflation, which means that the dollar depreciates in value and each dollar is capable of buying fewer goods and services. In terms of an inflation measurement, CPI is the most obvious way to quantify fluctuations in purchasing power

  • The USDCAD pair is only bearish while trading above the 1.2880 level, further losses towards the 1.2700 and 1.2550 levels remain likely.
  • If the USDCAD pair trades above the 1.2880 level, buyers may test towards the 1.3000 and 1.3130 resistance levels.

Thursday 11th February, US Initial Jobless Claims

US Initial Jobless Claims is released by the United States 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 strength in the United States labour market and is closely followed by both traders and investors.

  • The EURUSD pair is bullish while trading above the 1.2060 level, key resistance is found at the 1.2130 and 1.2230 levels.
  • If the EURUSD pair moves below the 1.2060 level, sellers may test towards the 1.2000 and 1.1960 levels.

Friday 12th February, US Consumer Sentiment

The Michigan Consumer Sentiment Index released by the University of Michigan is a survey of personal consumer confidence in economic activity. It shows a picture of whether or not consumers are willing to spend money. Generally speaking, a high reading anticipates positive for the US dollar currency, while a low reading is seen as negative for the US dollar currency.

  • The USDCHF pair is only bearish while trading below the 0.9000 level, key support is found at the 0.8880 and 0.8750 levels.
  • If the USDCHF pair trades above the 0.9000 level, buyers may test towards the 0.9100 and 0.9210 resistance levels.

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