The week ahead has many a fundamental new release to look forward to, events which are sure to have traders licking their lips at the implied volatility and the numerous trading opportunities they create. Let us take a look at our top 3 picks:

  • Monday sees the release of the Tokyo Core CPI y/y figure out of Japan. The figure represents the change in the price of goods and services purchased by consumers in Tokyo, Japans most populated city. The CPI accounts for the majority of overall inflation, the key figure in determining interest rates, which the Bank of Japan (BOJ) keep an eye on as they have made it their goal to increase inflation. A better than expected release will imply that the BOJ`s recent measure have been successful in heating up the Japanese economy thus strengthening the JPY while worse than expected release will see the JPY depreciate as markets expect further action from the BOJ.
  • Tuesday sees the release of the US CB consumer Confidence figure. This figure is a leading indicator which surveys the financial confidence of around 5000 households and is a predictor of the future spending of consumers as a whole. Respondents rate their expectation compared to the previous period on factors such as employment, business conditions and the overall condition of the economy. A better than expected release will show a higher level of confidence which will bode well for the USD while a worse than expected figure will see the USD depreciate.
  • Thursday sees the release of the US Unemployment Claims which indicate the number of individuals who filed for unemployment insurance for the first time during the past week. Seeing that it is the earliest form of economic data for the month, investors will scrutinise the figure in trying to determine just how well the US labour market is doing. A print which comes in above expectations, indicating that more than expected filed for unemployment, will likely see the USD depreciate across the board while a lower than expected release will see the USD appreciate.

The above are just the tip of the iceberg of the daily events which occur in markets, for daily technical and fundamental analysis please visit: https://www.opteck.com/market-review/fundamental-analysis/