The macroeconomic calendar is full of data this week, and there is a lot of interesting information for investors.
USD: Focus on inflation
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.
EUR: Reliance on ECB meeting minutes
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.
AUD: Positive impact of the news from China
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.
JPY: Between inflation and intervention
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.
GBP: rapid recovery
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.
