The Forex Forecast: A Week Ahead Analysis – Key Data to Watch
Author: Julie Fernandez, Senior Financial Analyst at Triangle Profits
Introduction: As we embark on another thrilling week in the Forex market, several critical economic indicators stand ready to shape the trading landscape. Let’s dive into what the upcoming week holds for Forex traders.
Canadian CPI and the BoC’s Next Move The spotlight first turns to the Canadian Consumer Price Index (CPI), with forecasts pointing to a drop from 0.1% to -0.3%. This significant shift could ignite talks about the Bank of Canada’s (BoC) potential rate cut within the year. For traders with interests in CAD or CAD-linked pairs, brace yourselves for possible market volatility.
BoE Governor Bailey’s Speech and UK CPI Attention shifts to the UK, where Bank of England (BoE) Governor Bailey’s upcoming speech is eagerly anticipated. Scheduled just before the UK Consumer Price Index year-over-year (CPI y/y) release, which expects a minor decline of 0.1%, Bailey’s remarks could be a pivotal moment for GBP movements.
US Retail Sales and Unemployment Claims In the US, the emphasis is on consumer behavior and job market health. Retail Sales are projected to rise from 0.3% to 0.4%, a potential signal of strong consumer confidence. Conversely, a slight increase in Unemployment Claims, from 202k to 204k, might raise concerns about job market stability.
Currency Pair Analyses:
- USD/JPY: Recently rallied from 143.75 support, with resistance at 146.25. A continuation of JPY weakness might push the pair back towards this resistance level.
- EUR/JPY: The focus remains on JPY’s weakness. Currently trading above 158.00, the next resistance is eyed at 161.50.
- GBP/JPY: Having broken past the 184.00 resistance, this level may now act as support, with a target set at 187.15 for long traders.
Conclusion: This week promises an engaging mix of economic data and potential market movements. Stay updated with Triangle Profits for more insights and analysis as we navigate the ever-changing landscape of the Forex market.
