Financial markets seem to be getting ready for such a move in the week ahead. Six key economic indicators that will drive currency movements and trade flows. The GBP/USD finished last week with some strong bulls. Coming on the heels of two straight weeks of red, this week’s rally was a welcome sign of changing market sentiment. Traders are particularly looking forward to three big economic reports being released on September 8. These are Germany’s Balance of Trade outcomes, the Industrial Production data and the Sentix Index.
The Euro has been pretty active as well, EUR/USD soaring to five-week highs near 1.1750 on Friday. This positive trend is symptomatic of increased investor confidence in the Eurozone’s economic recovery. At the same time, the USD/JPY was under a serious waterfall decline, tanking all the way down to the 147.00 area by Friday’s close. These movements highlight the amazing volatility at play right now in the currency markets as traders continue to digest and react to incoming economic data.
The realtime highlight on September 10 will be major reports from the United States. LOOK AHEAD Watch MBA Mortgage Applications PPI Wholesale Inventories Crude prices will be affected by the EIA releasing its weekly report on US crude oil stockpiles on the same day. Environmental Symbol This announcement will have profound impact on the future energy markets and currencies.
The week ahead will be a telling one for the developing shape of Japan’s economic landscape. On September 8, Japan’s Current Account results (final) with final Q2 GDP Growth Rate. These figures should provide more insight into the pace of Japan’s economic recovery and their fiscal house in general.
As the week goes on, some bigger stories are expected. On September 11, another country whose name we will not yet disclose will be publishing its Inflation Rate data. Simultaneously, the United States will release its Initial Jobless Claims. These indicators are now the best metrics we have for gauging inflationary pressures and labor market tightness going forward.
12, Germany will be releasing its Complete Inflation Rate at the end of the month. This announcement will provide further insight into the direction of pricing in Europe’s largest economy. These will be key developments for investors to closely monitor as they assess what central banks might do next and how they’ll recalibrate monetary policy.