Powell's speech and remarks from other central bankers caused a lot of volatility last week and now markets are turning their attention to crucial US data - CPI report for January. Apart from that, US retail sales data, GDP numbers from Japan and fresh reports from Australian and UK economies will also constitute potential next week volatility triggers. Be sure to watch US500, GBPJPY and AUDUSD in the week ahead!
US500
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Create account Try a demo Download mobile app Download mobile appA key macro data of the next week - US CPI inflation report for January - will be released on Tuesday at 1:30 pm BST. Market expects further deceleration in US price growth with headline CPI dropping from 6.5% to 5.8% YoY, while core gauge is expected to tick higher from 5.7 to 5.3% YoY. Deceleration in price growth may lead to easing of Fed rate hike bets, which would be negative for the US dollar and, in turn, positive for US equities and gold.
AUDUSD
AUDUSD pair will get a chance to move on Thursday, when Australia employment data will be released at 0:30 am GMT. The market consensus is for a 50,000 increase in jobs and for the unemployment rate increase slightly to 3.6%. Later in the session, at 1:30 pm GMT latest US PPI figures will be released. On Wednesday investors will be served several interesting data releases from the US economy, including January retail sales, industrial production data.
GBPJPY
The GBPJPY pair experienced wild swings on Friday following publication of latest GDP figures from Great Britain and on news that Kazuo Ueda may become the next head of BoJ. Elevated volatility may persist on Tuesday during publication of fresh GDP figures from Japan (00:50 am GMT) and data from the UK labour market (7:00 am GMT). Apart from that, release of UK inflation figures on Wednesday 7:00 am GMT should also make the pair move.
