This article was submitted by Antreas Themistokleous, market analyst at Exness.
This preview of weekly data looks at EURUSD and GBPUSD where economic data and the general financial situation in the banking industry are the main drivers in the markets for the time being.
The most important economic data for this week are:
- Preliminary German inflation rate on March 30th at 12:00 PM GMT. The current rate of 8.7% is a 60 year high while market expectation is for a drop to 7.3%. As the largest economy in EU the German data affect the Euro overall so if the consensus is confirmed we might see some minor losses on the Euro at least in the short term.
- Flash European inflation rate on March 31st at 09:00 AM GMT. The figure is expected to slightly decrease by 1.3% which could possibly influence a more dovish stance by the ECB on the May 4th meeting therefore creating minor losses for the Euro.
- European unemployment rate on March 31st at 09:00 AM GMT. The market is not expecting any changes in this figure for the month of February while the figure remains relatively unchanged for the last year.
- US personal income and personal spending on March 31st at 12:30 PM GMT. The expectations are for a drop of 0.3% and 1.5% respectively. This publication for the month of February might indicate that future inflation rates might be declining since consumers show reduced income and subsequently lower spending which might eventually lead up to lower inflation rates in the coming months.
- German unemployment rate on March 31st at 07:55 AM GMT. Similarly to the European unemployment rate the market is not expecting any changes in this figure for the month of March and the figure is also constant without any major fluctuations in the last 8 months.
EURUSD, daily
This would likely be a busy week for the Euro with economic data being released from Germany and European inflation and unemployment rates. On Thursday, German inflation figures for March will kickstart the investors interest ahead of a busy Friday session. After an aggressive bullish rally for the Euro against the Dollar in the last quarter of 2022 until early February 2023 the price has corrected to the downside with some minor gains seen in the last couple of weeks. This week’s data is expected to create some volatility on the Euro pairs with many eyes being set on the “Fiber” chart. Friday being the busiest day in terms of data , investors and traders would pay attention to the figures of inflation and unemployment rates coming from Germany and the European Area while investors would also monitor ECB member speeches throughout the week. ECB Executive Board members Frank Elderson, Isabel Schnabel, Andrea Enria, and ECB President Christine Lagarde are due to speak.