Tag Archives: Consumer Price Index

Market Outlook and Key Economic Indicators

Market Outlook and Key Economic Indicators: This week, traders and investors closely watch several key economic indicators and central bank
decisions expected to influence the financial markets.
The main events include the Consumer Price Index (CPI) releases from both China and the United States,
the Federal Open Market Committee’s (FOMC) economic projections, and the interest rate decisions from the Federal Reserve and the Bank of Japan.

 

Content
Economic Calendar

Gold
Oil

Dow Jones
GBPUSD

EURUSD

USDJPY

 

 

 

Economic Calendar

Wednesday, June 12, 2024

Consumer Price Index (YoY) (May)-CNY

Consumer Price Index (YoY) (May)-USD

Federal Open Market Committee Economic Projections-USD

Federal Reserve Interest Rate Decision-USD

Friday, June 14, 2024

Bank of Japan Interest Rate Decision-JPY

Federal Reserve Monetary Policy Report-USD

 

Gold

Following positive U.S. unemployment data, gold prices dropped by approximately 1.50% during last week’s trading.
Markets are awaiting the Consumer Price Index data on Wednesday.
Technically, prices have reached the critical support levels of 2277-2287, making a rise to 2317-2330 likely.

 

Oil

West Texas Intermediate crude futures stabilized around $75 per barrel,
marking losses for the third consecutive week due to supply increase concerns and expectations of declining global demand.
Technically, prices rebounded from the 78% Fibonacci retracement level of the upward move since the beginning of the year,
touching a price cluster area at $76.
If prices rise above the key level of $79, it could trigger a rise to $84-$87.
However, a clear break below the recent low would indicate a continued decline to the main support of around $68.

 

 

 

Dow Jones Industrial Average

Following positive U.S. unemployment data, the index showed mixed movements last week,
rising by approximately 0.10%. Markets are awaiting the Consumer Price Index data on Wednesday.
Technically, the index is above the support levels of 38470-38600, making a rise to 39225 likely.

 

GBPUSD

The pair fell by approximately 0.15% last week following positive U.S. unemployment data and the European interest rate cuts.
Markets are awaiting the Consumer Price Index data on Wednesday.
Technically, the pair has reached support at 1.2700, with the lower boundary of the ascending price channel indicating a likely rise to 1.2750.

 

EURUSD

The pair fell by approximately 0.50% last week following positive U.S. unemployment data and the European interest rate cuts.
Markets are awaiting the Consumer Price Index data on Wednesday.
Technically, the price is at the support levels of 1.0795-1.0805, with a harmonic pattern suggesting a likely rise to 1.0850.

 

USDJPY

The dollar stabilized near the 157 yen level and remained upward,
finding support at 153.60. With prices holding above the key level of 156.27,
further upward movement is expected, facing resistance at 157.70 and 160.20.
However, a clear break below the key level could lead to a retest of the support levels at 153.60 and then the price cluster area around 151.

 

Market Outlook and Key Economic Indicators

Consumer Price Index report will clarify whether the inflation path is still rugged

 Consumer Price Index report will reveal whether inflation remains rugged: This week, investors will discover whether Wednesday’s release
of the Consumer Price Index will show the persistence of price pressures. Will inflation face another “bump” along the way?

 

Content
Details

Federal Reserve

 

Details

After 2023 saw a decline in inflation rates, 2024 showed that prices appeared “steady,”
with inflation rates tending to rise again over the past few months.
This includes the annual inflation rate for the Consumer Price Index at 3.5% in March,
which has risen for the third consecutive month. Before that, the Producer Price Index data will be released on Tuesday,
showing price changes for wholesalers, which can be an indicator of upcoming price changes at the consumer level.

Some Federal Reserve officials have described the recent rise in inflation rates as “rugged,”
considering the spike in prices as a signal of the necessity

to keep interest rates at their current high levels for decades.
Another high inflation reading could weaken hopes for a cut in interest rates.

 

 

 

 

Federal Reserve

officials from the Federal Reserve have expressed the need to be cautious before cutting interest rates.
Federal Reserve Governor Michelle Bowman stated she does not expect cutting interest rates in 2024 would be appropriate,
while Dallas Federal Reserve President Lorie Logan said it is still too early to consider reducing interest rates.
Meanwhile, data released on Friday pointed to a jump in consumer inflation expectations,
although the sharp decline in American consumer confidence added to the evidence that the economy is losing momentum.
The markets are still pricing in September as the start of the easing cycle.

Investors will also hear from several Federal Reserve officials this week, including Governor Jerome Powell,
who will speak to the Foreign Bankers’ Association in the Netherlands on Tuesday.
Federal Reserve Vice Chair Philip Jefferson, Cleveland Federal Reserve President Loretta Mester,
Atlanta Federal Reserve President Raphael Bostic,
and Philadelphia Federal Reserve President Patrick Harker is also on the calendar this week.

 

Consumer Price Index report will reveal if inflation remains rugged.

The main economic news and events for this week

The main economic news and events for this week include the rise of the euro against the US dollar,
important data starting from the European Central Bank on Thursday with interest rate decisions,
and the US Consumer Price Index and Producer Price Index on Wednesday and Thursday, respectively,
among other events and news presented in this report.

 

Content
Economic Calendar

Gold

Oil 

Dow Jones

GBPUSD

EURUSD

USDJPY

 

 

 

Economic Calendar

Wednesday, April 10

USD Core Consumer Price Index (excluding food and energy) (monthly) for March

USD Consumer Price Index

CAD Interest Rate Decision from the Bank of Canada

USD Minutes of the Federal Open Market Committee Meeting

Thursday, April 11

EUR Interest Rate Decision from the European Central Bank
 USD Producer Price Index
EUR European Central Bank Press Conference

Friday, April 12, 2024

GBP Gross Domestic Product

 

Gold

Gold prices surged by over 4.00% last week, registering new historical peaks despite positive US unemployment data.
The Gold awaits several important US data releases, including the Consumer and Producer Price Indexes.
With prices stabilizing above $2300, gold’s next target is expected to be around $2350.

 

Oil

West Texas Intermediate crude prices stabilized around $86 per barrel,
retreating after nearing $88. With prices above critical levels on the daily chart,
an upward trend is expected to continue if prices hold above these levels.
A confirmed break below could lead to a retest of the support levels between $83 and $80,
aligned with the uptrend line since the start of the year.

 

Dow Jones Industrial Average

The Dow Jones Industrial Average fell more than 3% last week before closing with a 2.50% decline.
The markets await several important US data releases this week,
including the Consumer Price Index on Wednesday and the Producer Price Index on Thursday.
With the index rising from the support level of 38600 and the presence of a harmonic pattern,
a continued rise to levels 39225-39295 is expected.

 

 

GBPUSD

The pound stabilized around 1.26 USD after forming a base near the 1.2500 support level.
On the daily chart, it remains in a sideways range,
with a potential return to an uptrend to levels 1.2710 and 1.2895 if a higher base forms.
A break below support could likely lead to a continued decline to support levels at 1.2280 and 1.2035.

 

EURUSD

The euro rose against the US dollar by about 0.5% last week.
The markets await important data starting from the European Central Bank on Thursday with interest rate decisions
and the US Consumer Price Index and Producer Price Index on Wednesday and Thursday, respectively.
With the price stabilizing above the support levels of 1.0795-1.0805, the pair is expected to continue rising to 1.0885-1.0900.

 

USDJPY

The USDJPY pair hovers around the 152 resistance level and above the 200-day moving average,
in a rectangular continuation pattern on a 4-hour timeframe.
A break above the resistance and holding above it is expected to lead to a continued rise,
targeting levels 153.50 and then 155.00. However, if it declines and breaks below the pivotal level of 148.90, a retest of level 146 is likely.

The main economic news and events for this week