The macroeconomic calendar is full of data this week, and there is a lot of interesting information for investors.
The US consumer price index for December will be published, and there is a chance that inflation has fallen from 7.1% to 6.5% year-on-year. This is not the most important inflation report for the Fed, but it is vital for capital markets. Decreasing inflation will allow us to hope for a moderate pace of interest rate hikes, putting pressure on the USD.
The Eurozone is preparing a significant stream of country-specific statistics. Minutes from the last ECB meeting will be presented; the document may contain indications for further rate hikes, and EUR could find a foothold in the minutes.
Australia will release retail sales and inflation data as well as trade balance details. A definite positive for the AUD exchange rate is a sign of China’s willingness to open its borders.
Japan releases statistics on household spending. The figure could increase by 0.6% y/y after an increase of 1.2% earlier, which could be a negative inflationary signal. JPY remains strong for now due to BoJ interventions but will weaken further.
The UK will present price and industry data. The GBP exchange rate has quickly recovered from last week’s stress and will remain resilient if the news does not add to the negativity.