This week holds some important news for the UK and the US, with inflation, GDP, and retail sales data all due this week.
Switzerland is expected to release CPI MoM data at 11:30 AM GMT+4 (Dubai Time). The CPI is expected to have increased from 0% to 0.6% YoY.
The US is expected to release the CPI y/y at 5:30 PM GMT+4 (Dubai Time). The CPI is forecasted to weaken from 3.4% to 2.9% YoY, while the Core CPI is expected to remain at 0.3% M/M.
Chinese Banks will be closed to celebrate the Spring Festival.
Another CPI reading this week is for the UK. This report is set for release on Wednesday at 11:00 AM GMT+4 (Dubai Time) and is expected to have increased slightly from 4% to 4.1% YoY.
BOE Governor Bailey will testify before the Economic Affairs Committee in London at 7:00 PM GMT+4 (Dubai time). His talks are closely watched to decipher any hints on the BOE's following monetary policy decisions. According to analysts, a more hawkish stance than expected may be good for the currency.
The unemployment rate in Australia is expected to be released at 4:30 AM GMT+4 (Dubai time). Unemployment in Australia is expected to have increased slightly from 3.9% to 4%.
UK GDP is due for release at 11:00 AM GMT+4 (Dubai Time). The UK economy is forecasted to have weakened significantly by 0.2% compared to a previous expansion of 0.3%.
The Retail Sales figure in the US will be released at 5:30 PM GMT+4 (Dubai time). Retail Sales are expected to have weakened significantly by 0.2% M/M compared to a previous increase of 0.6%.
The unemployment claims in the US are due to be released at 5:30 PM GMT+4 (Dubai time), expected to have declined from 218K to 217K. If the reading comes in less than expected, this may be positive for the currency, as analysts suggest.
UK Retail Sales will be released at 11:00 AM GMT+4 (Dubai time). This data is expected to have strengthened significantly, with retail sales expected to have increased by 1.5% MoM compared to a previous figure of -3.2%.
PPI is another inflation proxy for the US, expected to be released at 5:30 PM GMT+4 (Dubai time). The PPI is expected to have increased by 0.1% MoM compared to a previous figure of -0.1%, while core PPI is expected to rise from 0% to 0.1% M/M.
The final economic reading for this week is the US Prelim UoM Consumer Sentiment, which is expected to rise to 79.9 from 79. If the reading comes in higher than expected, analysts suggest this may be positive for the currency.
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