Markets look to high impacting US and German economic data
During the upcoming trading week financial markets will digest the outcome of the G7 Summit and await a slew of high-impacting economic data from the US and German economies. The United States economy releases important Trade, Jobs, Inflation and GDP data this week. The German economy releases important Q2 GDP, Unemployment and Inflation data, ahead of the upcoming ECB policy meeting.
Aside from US and German macroeconomic data releases, we see CPI Inflation data coming from Japan and the latest growth numbers from the Canadian economy. Traders and investors will be also focused on rising geopolitical tensions in Hong Kong and the latest Tweet’s from United States President Donald Trump.
Monday 26th August, USD US Durable Goods Orders
US Durable Goods Orders is a government report and is released by the US Census Bureau which measures consumer spending on long-term purchases, products that are expected to last more than three years. Durable goods are generally sensitive to monthly volatility as US consumers may delay purchases of durable items such as cars and televisions and choose to only spend money on necessities in times of economic hardship.
- The USDJPY pair is only bullish while trading above the 106.40 level, key resistance is found at the 107.00 and 108.00 levels.
- If the USDJPY pair trades below the 106.40 level, sellers are likely to test the 105.00 and 104.60 support levels.
Tuesday 27th August, EUR German Q2 GDP
German Gross Domestic Product is released by the Statistisches Bundesamt Deutschland and is a measure of the total value of all goods and services produced by Germany. GDP is considered as a broad measure of the German economic activity and health. A high reading or a better than expected number has a positive effect on the euro currency, while a weaker number is seen as euro negative.
- The EURUSD pair is bearish while trading below the 1.1130 level, key support is found at the 1.1100 and 1.1050 levels.
- If the EURUSD pair moves above the 1.1130 level, buyers may test the 1.1160 and 1.1230 resistance levels.
Wednesday 28th August, CHF Swiss ZEW Survey
Switzerland’s ZEW Survey Expectations is published by the Centre for European Economic Research and presents business and employment conditions, alongside other key elements affecting the day to day running of a business in Switzerland. Generally speaking, a high reading is seen as positive for the Swiss franc currency, while a low reading is seen as bearish for the Swiss franc.
- The USDCHF pair is only bullish while trading above the 0.9780 level, further upside towards 0.9860 and 0.9910 levels remains possible.
- If the USDCHF pair trades below the 0.9780 level, sellers are likely to test the 0.9710 and 0.9600 support levels.
Thursday 29th August, USD US Core PCE
The US Core PCE Index report is greatly valued mainly due to its capability of forecasting inflationary pressures inside the American economy. The Federal Reserve utilizes a measure of inflation resulting from the PCE as their primary gauge of inflation. An overall increase in prices may be derived from an excess take in of these high levels of production and consumption.
- The USDCAD pair is only bullish while trading above the 1.3210 level, further upside towards the 1.3290 and 1.3380 resistance levels seems possible.
- If the USDCAD pair trades below the 1.3210 level, sellers are likely to test towards the 1.3120 and 1.3000 support levels.
Friday 30th August, EUR EU Unemployment Rate
The EU Unemployment Rate is released by the Eurostat and represents the number of unemployed workers divided by the total civilian labor force. It is seen as aa leading indicator for the overall health and expansion of the European jobs market. Generally speaking, a decrease of the figure is seen as positive for the euro currency, while an increase is seen as negative for the euro.
- The EURGBP pair is bullish while trading above the 0.9000 level, key resistance is found at the 0.9110 and 0.9150 levels.
- If the EURGBP pair moves below the 0.9000 level, sellers are likely to test towards the 0.8950 and 0.8910 support levels.