Forecasting the Coming Week: US inflation figures grab all the attention


Following Monday’s Powell-driven sharp rebound in the US Dollar, the risk-linked galaxy managed to regain some balance as the sessions passed by, sparking a decent recovery in the likes of the single currency and the British Pound in an environment broadly dominated by speculations surrounding the potential timing of interest rate cuts by the Federal Reserve.

On Monday, the only release in the US docket will be the January Monthly Budget Statement. Moving forward, the US Inflation Rate is due on February 13, while Retail Sales, Industrial Production, Business Inventories, the NAHB Housing Market Index and Net Long-term TIC Flows are expected on February 15. Finally, Producer Prices, Housing Starts, Building Permits, and the preliminary Michigan Consumer Sentiment all be published on February 16. The USD Index (DXY) entered a small consolidative range following Monday’s sharp rebound to fresh YTD peaks past 104.00.

In the domestic data space, the Economic Sentiment for both Germany and the euro area tracked by the ZEW institute comes on February 13. Additionally, another revision of the Q4 GDP Growth Rate along with Industrial Production readings is due on February 14. The Balance of Trade figures in the euro bloc for the month of December will close the docket on February 15. EUR/USD ended the week on a positive note, regaining some balance following Monday’s steep decline. The pair continues to target the 1.0800 hurdle in the very near term.

It will be an interesting week, data-wise, in the UK. The labour market report is due on February 13, followed by the Inflation Rate on February 14. On February 15, the GDP figures, Balance of Trade, Construction Output, and Industrial and Manufacturing Production are due, all ahead of the NIESR GDP Tracker, Finally, Retail Sales for the month of January will be released on February 16. The weekly recovery in GBP/USD appears to have stalled just ahead of the 1.2650 zone so far.

In the Japanese calendar, Producer Prices are due on February 13 ahead of Industrial Production and the flash Q4 GDP Growth Rate on February 15. Weekly Foreign Bond Investment and the Tertiary Industry Index are both due at the end of the week. USD/JPY approaches the key 150.00 barrier on the back of the intense pick-up in selling pressure around the Japanese currency.

In Australia, the Westpac Consumer Confidence Index kickstarts the week ahead of the publication of the labour market report and Consumer Inflation Expectations on February 15. It was a choppy week for AUD/USD, which extended the trade in the lower end of the range around the 0.6500 zone.

 

Anticipating Economic Perspectives: Voices on the Horizon

  • RBA A. Kohler, BoE Governor A. Bailey and Minneapolis Fed N. Kashkari speak on February 12.
  • FOMC Governor M. Barr speaks on February 14.
  • RBNZ Governor A. Orr, ECB Board member J. Nagel are due to speak on February 15, along with BoE MPC members C. Mann and M. Greene.
  • On February 16, San Francisco Fed M. Daly, Atlanta Fed R. Bostic and BoE MPC member H. Pill are also seen delivering speeches.
Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD: Next on the downside comes 0.6500

AUD/USD: Next on the downside comes 0.6500

Further gains in the US Dollar kept the price action in commodities and the risk complex depressed on Tuesday, motivating AUD/USD to come close to the rea of the November low near 0.6500.

AUD/USD News
EUR/USD: No respite to the sell-off ahead of US CPI

EUR/USD: No respite to the sell-off ahead of US CPI

The rally in the Greenback remained well and sound for yet another session, weighing on the risk-linked assets and sending EUR/USD to new 2024 lows in the vicinity of 1.0590 prior to key US data releases.
 

EUR/USD News
Gold struggles to retain the $2,600 mark

Gold struggles to retain the $2,600 mark

Following the early breakdown of the key $2,600 mark, prices of Gold now manages to regain some composure and reclaim the $2,600 level and beyond amidst the persistent move higher in the US Dollar and the rebound in US yields.

Gold News
SOL Price Forecast: Solana bulls maintain $250 target as Binance lists ACT and PNUT

SOL Price Forecast: Solana bulls maintain $250 target as Binance lists ACT and PNUT

Solana price retraced 7% from $225 to $205 on Tuesday, halting a seven-day winning streak that saw SOL become the third-largest cryptocurrency by market capitalization.

Read more
Five fundamentals: Fallout from the US election, inflation, and a timely speech from Powell stand out

Five fundamentals: Fallout from the US election, inflation, and a timely speech from Powell stand out Premium

What a week – the US election lived up to their hype, at least when it comes to market volatility. There is no time to rest, with politics, geopolitics, and economic data promising more volatility ahead.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures