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Market Review: United States Core Consumer Price Index

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Market Review: United States Core Consumer Price Index

Market Review: United States Core Consumer Price Index

Economic calendar (highest volatility): 12th March– 16th March 2018:

Timezone: (GMT -5:00) Eastern Time (U.S & Canada), Bogota, Lima

Fundamental:

In the previous week, markets were surprised by the results of the Italian General Elections with anti-establishment, nationalist, and anti-Europeanist winning over 50% of the vote; an occurrence which was highlighted by the team here at FintechFX. While this result of may bring about further repercussions towards the Euro (EUR) moving forward, the major highlight last week still stands to be the stellar United States (U.S) Nonfarm Payrolls (NFP) performance adding 313,000 jobs in February 2018 against prior expectations of 200,000. Meanwhile, the January 2018 jobs data of 200,000 was also revised to 239,000. These indications further solidify a chance for several Federal Open Market Committee (FOMC) Interest Rate hikes to take place this year.

On a related note, the team here at FintechFX view the upcoming February 2018 U.S Consumer Price Index (CPI) release to be the major volatility driver this week as a positive number would strongly complement the recent NFP releases. In addition to this, European related February 2018 Inflation data is also due for release towards the end of the week which could bring about further indications on whether the Euro is ready for an Interest Rate Hike. 

Technical:

The main catalyst for the EUR in our opinion would be the end-of-week CPI release. This follows the Italian 2018 General Election results which expect more 'populist' favoring parties to enact pressure in regards to the country's stance in the European Union where they intend to stop the inflow of economic and political refugees into the country. The chart below currently shows that price is sitting below the daily Fibonacci 23.6% level. 

The main catalyst for the Swiss Franc (CHF) this week would be it's Interest Rate release data. Generally while the team here at FintechFX expects nothing much to change, Interest Rate views out of other non-American economies as of late seem to bring about somewhat a balancing opportunity for other currency pairs to strengthen again the United States Dollar (USD). Currently, the USD/CHF shows is showing some brief formation of an 'evening star' at the Fibonacci 38.2% level. 

 

Source (Charts): https://www.investing.com

Source (Economic Calendar): https://www.forexfactory.com/calendar.php

Contact Us: [email protected]

Economic Calendar by TradingView

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