The U.S NFP report on Friday will be one of the main economic events for the week ahead. Investors are looking for indications of improvement in the labor market after two months of showing weaker than expected results. With concerns over rising inflation and the strength of the recovery to the fore of investors’ minds, markets will also be looking at other labor market statistics, including wage growth and labor force participation. Last Friday's PCE report came inline with expectations at 3.4% - the highest read since 1992
On Wednesday, the Eurozone will report their inflation figures expected to come in at 1.9% from the previous month's report of 2.0%. German will also report their Unemployment Rate along with their. Employment Change. Forecasts are for a decline in new jobs (MoM) from -15k to -16k. However the unemployment rate is expected to drop by 1 basis point from 6.0% down to 5.9%
Furthermore, on Wednesday we get the first glance at what at we might expect with Friday's NFP with the ADP report expected to come in at 600K from the previous month of an astonishing 978K.
Canada is also reporting GBP with a forecast of less than the previous month at -0.9% from 1.1%
Thursday we have PMI data from the Eurozone, UK and the U.S. Switzerland is also reporting CPI data on Thursday
President Joe Biden’s $1.2 trillion infrastructure deal will continue to boost U.S. markets, but other concerns remain.
== TECHNICAL ANALYSIS ==
If the above mentioned reports come inline with expectations, we may continue to see some further US Dollar Strength. Currently on the daily chart you can see that price-action managed to hold above the 200 Simple Moving Average (SMA). If in fact the US Dollar maintains above the 200SMA, it's likely we will see another retest of the previous level of resistance around 1.2450. On the downside, failure to hold above the 200SMA, could result in further declines towards the 38.2% or 50% retracement levels from the most recent bullish impulse.
On Wednesday, the Eurozone will report their inflation figures expected to come in at 1.9% from the previous month's report of 2.0%. German will also report their Unemployment Rate along with their. Employment Change. Forecasts are for a decline in new jobs (MoM) from -15k to -16k. However the unemployment rate is expected to drop by 1 basis point from 6.0% down to 5.9%
Furthermore, on Wednesday we get the first glance at what at we might expect with Friday's NFP with the ADP report expected to come in at 600K from the previous month of an astonishing 978K.
Canada is also reporting GBP with a forecast of less than the previous month at -0.9% from 1.1%
Thursday we have PMI data from the Eurozone, UK and the U.S. Switzerland is also reporting CPI data on Thursday
President Joe Biden’s $1.2 trillion infrastructure deal will continue to boost U.S. markets, but other concerns remain.
== TECHNICAL ANALYSIS ==
If the above mentioned reports come inline with expectations, we may continue to see some further US Dollar Strength. Currently on the daily chart you can see that price-action managed to hold above the 200 Simple Moving Average (SMA). If in fact the US Dollar maintains above the 200SMA, it's likely we will see another retest of the previous level of resistance around 1.2450. On the downside, failure to hold above the 200SMA, could result in further declines towards the 38.2% or 50% retracement levels from the most recent bullish impulse.