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Forex News – Week Ahead – Inflation numbers from US, UK Eurozone in focus

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housingThe highlight of this week will be Fed Chair Janet Yellen’s testimony as well as GDP numbers from the US, UK and Germany. Meanwhile, Euro zone, UK and US inflation data are also important to watch for.

On Monday, the Bank of Japan will release minutes from its latest monetary policy meeting.

Focus will then turn to Germany’s Ifo business climate data. In the US, existing home sales figures are due.

Tuesday’s economic calendar will be quite busy. The final Eurozone inflation data will be released by Eurostat. A flash estimate of the region showed consumer prices falling 0.6% in January, the steepest drop since 2009. Also on this day, Germany releases fourth quarter GDP data. These are important since Germany is seen as Europe’s engine of growth.

From the US, flash Services PMI data for February are due. Also Case Shiller home prices will be published. Then, later in the day, Fed Chair Janet Yellen will testify on the Semiannual Monetary Policy Report before the Senate Banking Committee, in Washington DC. This event will likely be the highlight of the week.

On Wednesday, China finally goes back to business as usual after breaking for the Lunar New Year holiday. The HSBC Flash China Manufacturing PMI will be released by Markit

On Thursday, the UK will release a second estimate of fourth quarter 2014 GDP numbers. The initial estimate showed the rate of economic growth slowing to 0.5%.

Also on Thursday, Germany releases a set of data on unemployment numbers, retail sales figures and Gfk consumer confidence data. The Eurozone will publish business climate and M3 money supply data. Meanwhile, the ECB releases the targeted LTRO amount.

Meanwhile, on this day, the US sees the release of inflation numbers and durable goods orders data. In December, the rate of inflation slowed to 0.8%, the weakest in over five years. Meanwhile, January CPI data are expected to show inflation eased further to 0.1%. This would likely push the FOMC to delay hiking rates. Jobless claims data will also be closely watched on this day.

On Friday, Japan will release a slew of data including household spending, inflation, retail sales, unemployment numbers and industrial output data.

Germany releases preliminary inflation data. Focus will then be in the US which releases fourth quarter GDP numbers. Chicago PMI, pending home sales and the revised University of Michigan consumer sentiment survey will be watched.

Also on Friday, New York Fed President William Dudley, Cleveland Fed President Loretta Mester, Fed Vice Chair Stanley Fischer, European Central Bank Vice President Vitor Constancio and Bank of Japan Deputy Governor Hiroshi Nakaso are all scheduled to speak at a monetary policy forum, in New York.


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