Top 6 Economic Events: 10 – 14 January

Australia Retail Sales s.a. (MoM) - (Tuesday, January 11)

On Tuesday, January 11th, at 24:30 GMT, Australia's retail sales s.a. (MoM) will take place. The Australian Bureau of Statistics' Retail Sales report is a survey of items sold by retailers based on a sample of different types and sizes of retail outlets, and it's used as a gauge of the Australian economy's progress. It depicts the short- and medium-term performance of the retail industry. Positive economic growth signals bullish AUD tendencies, whereas a low reading indicates bearish or negative AUD trends.

Watch out for AUD/USD price action.

Fed Chair Powell Testifies - (Tuesday, January 11)

The Federal Reserve Chair, Jerome Powell, will deliver a speech at this event. The testimony is usually split into two parts: first, he reads a prepared statement (a text version is available on the Fed's website right away), and then the committee holds a question-and-answer session. Because the questions aren't known ahead of time, they can create certain unanticipated events, resulting in significant market volatility; as chairman of the central bank, which governs short-term interest rates, he wields more authority over the country's currency value than anyone else. Traders watch his public appearances closely since they frequently give away indications about future monetary policy. So, it is beneficial to the currency if the central bank is more hawkish than predicted. On Tuesday, Chair Jerome Powell will appear before the Senate Banking Committee to testify about his nomination for a second four-year term. A confirmation hearing for Fed Governor Lael Brainard's appointment to vice-chair is held two days later before the same panel. Loretta Mester, Esther George, Charles Evans, and James Bullard are the other Fed officials scheduled to speak.

Watch out for the EUR/USD and other dollar-related currency pairs.

US Consumer Price Index (MoM) - (Wednesday, January 12)

On Wednesday, January 12th, at 13:30 GMT, the US Consumer Price Index (MoM) will be released. The Consumer Price Index (CPI) of the United States Bureau of Labor Statistics is a gauge of price changes that involves comparing retail prices. The purchasing power of the US dollar is eroded by inflation. The Consumer Price Index (CPI) is an essential statistic for tracking inflation and changes in purchasing habits.

Typically, a high rating for the USD is regarded as favorable (or bullish), whereas a low number is considered unfavorable (or bearish). In November 2021, the CPI for all items, excluding food and energy, increased 0.5 percent month over month in the United States, following an increase of 0.6 percent in October and matching market expectations. Inflation in the US is likely to have reached its highest level in four decades, contributing to a shift in the Federal Reserve's monetary policy and increased consumer worry about the economy.

Watch out for the EUR/USD and other dollar-related currency pairs.

US Producer Price Index (MoM) - (Thursday, January 13)

On Thursday, January 13th, at 13:30 GMT, the US Producer Price Index (MoM) will be released. The Producer Price Index, published by the Bureau of Labor Statistics of the United States Department of Labor, examines the average changes in prices in US primary markets by commodity producers in all processing stages. PPI changes are frequently regarded as a leading predictor of commodity inflation.

In November 2021, the producer pricing index for final demand excluding food and energy in the United States increased by 0.7 percent, the highest gain since July's 0.8 percent increase and comfortably above market estimates of a 0.4 percent increase. As a result, core producer prices increased 7.7 percent year on year, the largest increase since data collection began in 2011.

In general, a high reading for the USD is considered favourable (or bullish), while a low number is deemed negative (or bearish).

Watch out for the EUR/USD and other dollar-related currency pairs.

US Initial Jobless Claims - (Thursday, January 13)

The first round of unemployment claims in the United States will be issued at 13:30 GMT on Thursday, January 13th. The number of individuals registering first-time claims for unemployment insurance is monitored by the US Department of Labor's Initial Jobless Claims data. In other words, it acts as a gauge of labour market strength.

A higher-than-expected figure indicates market weakness, which has implications for the health and trajectory of the US economy. Lower figures are often regarded as favourable or bullish for the USD. For example, in the United States, the predicted number of initial jobless claims is 210, with the most recent deviation being 0.69165.

Continuing jobless claims in the US soared to 1.754 million in the week ending December 25th, up from a revised 1.718 million the previous week and exceeding market estimates of 1.688 million. Thus, the unemployment rate has plunged below 4%. While this looks to be a positive trend that will hasten the attainment of full employment, the participation rate remains low compared to pre-Covid levels. However, due to the low participation rate of 61.9 percent, a small number of people finding work is required to bring the unemployment rate down.

Watch out for EUR/USD and other major pairs with the Dollar.

US Retail Sales (MoM) - (Friday, January 14)

On Friday, January 14th, at 13:30 GMT, the United States' retail sales (MoM) will occur. In November 2021, retail trade in the United States increased by 0.3 percent from the previous month, following a 1.8 percent increase in October and falling far short of market expectations of 0.8 percent, adding to signs of softening domestic demand despite the highest inflation in decades.

In November, core retail sales, which are most closely related to the consumer expenditure component of GDP, fell 0.1 percent. Building material and garden equipment dealers, food and beverage establishments, gas stations, apparel stores, sporting goods, hobby, musical instrument, and book stores, as well as restaurants and bars, were all accepting receipts.

Retail sales fluctuations are frequently regarded as a leading indicator of consumer spending. In general, a high rating for the USD is considered favourable (or bullish), while a low reading is deemed negative (or bearish).

Watch out for the EUR/USD and other dollar-related currency pairs.

That's it for this week!

Make sure to follow other market events on NAGA's Economic calendar.

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