📈🌏 Stay ahead in the forex market! 🌟 Keep an eye on China's Spring Festival impact, BOE Governor Bailey's speeches, and key economic indicators from the UK and US. Don't miss out on potential trading opportunities! #Forex #MarketAnalysis #TradingInsights
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Forex Week Ahead Analysis
China's observance of the Spring Festival holiday throughout the week is expected to have a significant impact on certain assets, particularly those tied to the Chinese market, such as the Hang Seng index.
Bank of England Governor Andrew Bailey is scheduled to speak twice this week, with engagements at Loughborough University and testimony before the Economic Affairs Committee. Bailey's remarks could provide valuable insights into the central bank's monetary policy stance and its outlook on the UK economy, influencing sterling's performance in the forex market.
Attention will also be on key economic indicators from the UK. The Consumer Price Index (CPI) year-on-year is forecasted to tick up from 4.0% to 4.1%, potentially impacting expectations regarding inflationary pressures. However, GDP data is expected to show a contraction, with forecasts pointing to a decline from 0.3% to -0.2%.
In the US, investors will be closely watching the release of Consumer Price Index (CPI) month-on-month data, which is projected to dip slightly from 0.3% to 0.2%. Core CPI, however, is forecasted to remain steady at 0.3%. Additionally, attention will be on US retail sales figures, which are expected to show a decline from 0.6% to -0.2%. These indicators will offer insights into the state of inflation and consumer spending in the world's largest economy, potentially impacting the trajectory of the US dollar in the forex market.
USD Index
The price on the chart has traded through multiple technical levels and some observations included:
- USD strength has dominated markets in the last few weeks, however price is now trading at below the key 104.50 resistance.
- A break above this resistance would see this narrative continue with 106.00 being the next point of resistance.
- Below the next support can be found towards 103.50.
EUR/USD
The price on the chart has traded through multiple technical levels and some observations included:
- Depending on the impact of the USD this week, EURUSD could break either way.
- Price has found support towards the December 23 lows around 1.0725, however buying momentum has been tame from here.
- Minor resistance can be found at 1.0800, a break above this level and price could trade towards 1.0900 highs.
GBP/USD
The price on the chart has traded through multiple technical levels and some observations included:
- Cable could be one to watch this week considering the high impact data releases.
- The price of cable currently sits below the medium term range lows of 1.2625.
- A break back within the range could see price trade towards highs of 1.2800.
- If the price stays below the 1.2625 level, we may see 1.2525 re-visited.
SILVER (XAG/USD)
The price on the chart has traded through multiple technical levels and some observations included:
- The price of Silver could be of interest this week as the price finds support towards $22.00.
- The GOLD/SILVER ratio, a barometer of strength and weakness shows a rejection of strong resistance.
- This could highlight the potential for Silver to move higher.
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