High Impact Economic Data for the upcoming week (All Times GMT+3)

market preview

Weak Ahead Nov 16-21

This week features a heavy news flow from Monday to Thursday across major currencies. The main currencies in focus are the EUR, USD, GBP, JPY, AUD and CAD. The week kicks off with Japanese Preliminary GDP data. At present the USDJPY is trading at highs and this release could deliver a price explosion if the data deviates from the expected figure. On Tuesday the highlights include AUD Monetary Policy Meeting Minutes and a speech by the RBA Gov Stevens, followed by UK CPI and German ZEW Economic Sentiment in the morning for the GBP and EUR respectively. In the afternoon USD PPI data will impact the USD and Dollar crosses. Wednesday is a Monetary Policy centered day with the JPY Monetary Policy Statement and the BOJ Press Conference first up, followed by GBP MPC Asset Purchase Facility and MPC Official Bank Rate Votes and the big event in the evening with the US FOMC Meeting Minutes. The Japanese Monetary events and the US FOMC Minutes are highly likely to create volatility and increased exchange volumes while the GBP version will only affect the currencies given a deviation from present policy and expectations. Towards the end of the week on Thursday there is Flash Manufacturing PMI data released in China, France and Germany followed by Retail Sales in the UK, as well as the CPI inflation data for the US and the Unemployment Claims. And on Friday the week simmers to a close with a speech by ECB President Marion Draghi and the Core CPI data from Canada.

Events to Watch this Week

The USD uptrend continues unabated and the dollar is at highs versus the JPY and GBP and close to highs against the EUR, AUD, CAD and CHF. Any reversal could be quick and powerful leaving USD holders with quick sharp losses. On the other hand while the USD has the momentum and is close to new highs further strength could punish Dollar bears WTI Crude Oil slumped to a four year low on Thursday reaching as a low as $73.18 after falling $4.82 in a day. The latest 6% decline pushed crude below $75 and extended the steep declines in Crude Oil over the last months. Further weakness in Crude Oil could help the USD and is likely to weigh on the AUD and CAD as well as other Oil and Resource producing economies.