As we delve into the upcoming trading week (July 10-15, 2023), there are several key events that warrant close attention. By understanding and analyzing these events, traders can gain valuable insights and make informed decisions. In this article, we will highlight the important economic data releases and policy decisions that can significantly impact market dynamics. Let’s plan your trading week together.
Employment Data from the UK and Bank of England’s Outlook:
On Tuesday, the employment data from the UK will be closely watched as the Bank of England aims to assess the need for future tightening measures. Traders should keep a keen eye on these figures as they can provide insights into the country’s economic health and potential monetary policy adjustments.
Reserve Bank of New Zealand’s Policy Decisions:
Early Wednesday, the Reserve Bank of New Zealand will announce its policy decisions, offering traders an opportunity to gauge the central bank’s stance on interest rates and its assessment of the country’s economic outlook. These decisions can have a significant impact on the New Zealand dollar and related currency pairs.
Consumer Price Index (CPI) Data from the US:
Later on Wednesday, the release of the US CPI data will likely ramp up market volatility and influence the valuation of the US dollar. Traders should closely analyze the CPI figures as they provide insights into inflationary pressures and can shape expectations regarding future monetary policy actions.
Trade Balance Data from China:
In the second half of the week, traders should pay close attention to the trade balance data from China. As the world’s second-largest economy, China’s trade figures can have widespread implications for global markets. These data releases can provide valuable insights into the country’s export and import levels, impacting various currency pairs and commodities.
EUR/USD: Focus on Inflation:
For traders focusing on the EUR/USD pair, it’s essential to consider the impact of inflation. Last week, the pair experienced limited activity, with the Euro being held in check due to the absence of significant European data. By staying updated on inflation trends and related indicators, traders can anticipate potential shifts in the EUR/USD exchange rate.
Gold: Rebound Potential and Yield Factors:
Global yields have been a dominant factor affecting gold prices. Despite the ongoing pressure, gold managed to defend the $1,900 level, supported by Friday’s mixed job report. Traders should closely monitor yields and seek potential pullbacks to gauge gold’s rebound potential and assess trading opportunities.
Economic Calendar Highlights:
To help traders plan their week effectively, here are some of the key economic events scheduled for the coming week (all times in GMT):
– Monday: Consumer Price Index (CPI) data from China, Sentix Investor Confidence in the Eurozone, and BRC Like-For-Like Retail Sales in the UK.
– Tuesday: Westpac Consumer Confidence in Australia and various employment-related data from the UK.
– Wednesday: Monetary Policy Statement and Interest Rate Decision from the Reserve Bank of New Zealand, Consumer Price Index (CPI) data from the US, and Bank of Canada Monetary Policy Report and Interest Rate Decision.
– Thursday: Bank of Korea (BoK) Interest Rate Decision, trade balance data from China, and various economic indicators from the UK and the Eurozone.
– Friday: EcoFin Meeting in Europe, Michigan Consumer Sentiment Index and Consumer Inflation Expectation in the US.
