Today’s session should belong to those calmer. It should because we are still waiting for important data from America. Meanwhile, some of the Asian countries, including China celebrate the lunar New Year. Business in many centers in the East was therefore put on hold, and the market is slowly entering weekend mood. Welcome to the last market overview this week!
Despite the holidays, at night the highest volatility enjoyed pairs associated with the Japanese yen. Responsible for this where published data on changes in the level of consumer inflation. The national CPI data in December was 0.3% higher than those reported last year. Such an image positively surprised the market, which had expected a slowdown in growth rate to 0.2%. The January CPI in the Tokyo district against the forecasts increased by 0.1%. USD/JPY after the comment of Prime Minister Abe, who questioned the possibility of a complete exit from deflation in Japan, continues to rise and is now above the level of 115.00:
Positive news flow to us also from Australia. The local production company PPI (Producer Price Index released by the Australian Bureau of Statistics measures the average changes in prices in the Australian markets by producers of commodities. Changes in the PPI are widely followed as an indicator of commodity inflation. A high reading is seen as positive (or bullish) for the AUD, whereas a low reading is seen as negative (or bearish) ) inflation also surprised by unexpected increases. From quarter to quarter Australian PPI increased by 0.5% at the forecast decline in growth to 0.2% led AUD/USD to a small correction currently under way on declines:
What are we waiting for?
It seems that the most important event in the morning will be the start of summit of finance ministers of the European Union around 11:00. Perhaps we will hear new comments on the current shape of the ECB’s monetary policy.
The first publication of the US session will be report on durable goods orders in US companies. Much more important, however, can be, published in parallel, the first estimate of US GDP for the fourth quarter of 2016 years. Forecasts say the ratio of the stable growth of 2.2%. Both reports will be published at 14:30.
16:00 The University of Michigan will release its indicators describing among other things, the current economic sentiment and inflation forecasts. These are the data on a much smaller scale than the GDP, but should keep them in mind when trading.