The FX Week Ahead

The FX Week Ahead

The FX Week Ahead

Inflation In Focus

In the FX week ahead we see CPI & PPI Inflation figures from the Swiss, German, UK and American economies for the month of January. FX markets are likely to reacts to the healdine month-on-month numbers, as investors remains concerned about rising inflation across the globe, especially as markets are now pricing in rising wages and also rising inflation leading to a number of Central Banks hiking rates in 2018. The U.S and Uk CP inflation releases will most likely be the driving force for FX aside from the rising U.S dollar index, as both the FED and BOE are embarking on fiscal tightening.

Can Stocks & Cryptos Bounce

After suffering a week of pain on the Equity and Cryptocurrency markets, investors will look for some sign on stabilization this week, before deciding what to do next. Should we see both Bitcoin and the Dow Jones Industrial Index start to form a base at current level on Mon-Wed, we may see investors and traders start to go bargain hunting. On Friday we saw a late round of buying, both in stocks and digital currency space, both now need to hold the key lows set last week to encourage speculators and investors to start to get on board from depressed 2018 levels.

Q4 GDP On Tap

This week we see key fourth quarter Gross Domestic Product figures coming out from the Japanese economy and the Eurozone trading block. The Japanese economy could throw in a few surpises, as exporters are encouraged from strong monthly industrial production figures and a wildly fluctuating USDJPY exchange rate. Whilst the eurozone has been reporting record Manufacturing PMI numbers, as solid overseas orders and medium-valuated euro currency has help the economies of France, Spain and Italy start to expand again after suffering years of negative and medial growth.

Other Highlights

Swiss CPI

UK Retail Sales

Australian employment/Unemployment

U.S Consumer Confidence