A Week in the Market: a Lot of Statistics (9-13 January)

USD: Focus on inflation

The US consumer price index for December will be published this week, and there is a chance that the inflation rate has fallen from 7.1% to 6.5% year-on-year. While this is not the most important inflation report for the Fed, it is vital for capital markets. A decreasing inflation will allow hope for a moderate pace of interest rate hikes that put pressure on the USD.

EUR: Reliance on ECB meeting minutes

The Eurozone is preparing a significant stream of country-specific statistics. The minutes from the last ECB meeting will be presented; the document may contain indications for further rate hikes, the outcome of which might help the EUR find a foothold.

AUD: Positive impact of the news from China

Australia will release its retail sales and inflation data as well as trade balance details. A definite positive for the AUD exchange rate is Chinas 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 a 1.2% rise earlier, which could be a negative inflationary signal. The 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 and will remain resilient if the news does not add to the negativity.