The number of employees in the euro zone rose in the fourth quarter by 0.3% after rising 0.2% in the previous month,while the predicted growth of 0.2%.Retail sales in the US rose in February for 0.1% after rising 0.6% in the previous month, which was in line with analyst expectations. Core retail sales rose 0.2% after rising 1.2% in the previous month. Consumer price inflation in the US rose in February by 0.1% after rising 0.6% in the previous month. It was in line with forecasts.
The unemployment rate in the UK fell in January to 4.7% from 4.8% in the previous month.It expected to remain unchanged.A number of unemployed in the UK fell in February for 11300 persons,while the predicted decline of 5000,after falling 41400 in the previous month. Index average wage in the UK rose by 2.2% in January, after rising 2.6% in the previous month. Economists had predicted an increase of 2.4%. Japanese industrial production fell in February by 0.4% after falling 0.8% in the previous month. It expected to decline by 0.8%.
Official data showed that the euro zone trade balance fell in January to 0.6 billion euros from 28.1 billion in the previous month.Exports grew by 13% in January on the year to 163.9 billion, while imports increased by 17% to 164.5 billion euros.
Industrial production in the US remained unchanged in February after rising 0.1% in the previous month,while the predicted growth of 0.2%.The US leading economic index increased in February by 0.6% after rising 0.6% in the previous month. Analyst expected growth of 0.4%.
The index of consumer sentiment in the US rose in February to 97.6 from 95.7 in the previous month,while economists predicted growth of 97.0 points.Sales in Canadian manufacturing sector grew in February by 0.6% after rising 2.3% in the previous month.Analysts expected a drop of 0.2%.
Monday 20th March
It will be published Monetary Policy Meeting Minutes for Australian dollar.
Tuesday 21st March
It will be released Consumer Price Index for pound, Core Retail Sales for Canadian dollar and GDT Price Index for New Zealand dollar.
Wednesday 22nd March
It will be published Crude Oil Inventories for the US dollar and Official Cash Rate for New Zealand dollar.
Thursday 23rd March
It will be released Retail Sales for pound, Unemployment Claims for the US dollar. Janet Yellen will be spoken.
Friday 24th March
It will be published Consumer Price Index for Canadian dollar and Core Durable Goods Orders.
My trading tips
I’m call option on EUR/USD this week.
I’m neutral on USD/JPY this week.
I’m put option on GBP/USD this week.
I’m put option on AUD/USD this week.
I’m call option on USD/CAD this week.
The Fed raised the rate. It is optimistic situation in the euro zone. It could push higher the currency pair.
The Fed hiked rate but it sent dovish statement.
The Bank of England continued neutral monetary policy. The monetary policy divergence supported the US dollar.
Bearish trend on AUD/USD this week.
Positive sentiment for the US dollar will push higher the currency pair this week.
During this week, financial markets will focus on speeches several Fed officials including Janet Yellen, as well as a series of economic data from the US, UK, Eurozone and Canada.
Several Fed officials will speak during this week, and investors expect insight into the pace of interest rate hikes in the coming months. Today, the New York Fed president in Chicago, Charles Evans, talk about current economic conditions and monetary policy. Tomorrow will be the President of the Fed in New York, William Dudley, then from Kansas City, Esther George, and Cleveland, Loretta Mester, appear in public. On Thursday, the President held a speech Fed, Janet Yellen in Washington, while Friday will speak Evans, Charles, William Dudley and James Bullard.
On Tesday the Office for National Statistics UK will publish data on consumer price inflation in February. Analysts predict growth of 2.1% after an increase of 1.8% in the previous month. On Thursday will be published data on retail sales in February, and is expected to grow by 0.4% after falling 0.3% in the previous month.
On Tuesday it will tomorrow publish data on retail sales for January. Economists expect growth of 1.0 percent after falling 0.5% in December. For basic retailing is projected to grow by 1.2% after falling 0.3% in the previous month. On Friday will be published data on consumer price inflation in February and is expected to grow by 0.2% after rising 0.9% in the previous month.
On Wednesday will be published data on existing home sales for February, and is forecast to decline 1.8% to 5.57 million units, after rising 3.3% in the previous month. On Thursday will be published a report on new home sales in February. It is expected to grow by 0.6% to 568000, after a jump of 3.7% in January.
The euro zone on Friday to announce preliminary data on activity in the manufacturing and services sectors in March, is expected to be a modest decline. France and Germany will also publish the same information.
Current account balance of the US rose in February to minus 112.4 billion to minus 116.0 billion in the previous month. Economists expected a drop to minus 128.2 billion. The house price index in Australia rose in the fourth quarter by 4.1% after rising 1.5% in the previous quarter. Analysts had expected growth of 2.4%.
The yen strengthened against us dollar and pound after the published data showed that Japan's trade balance rose to February. USD/JPY recorded the bottom of 111.13 and subsequently consolidated at 111.296. GBP/JPY dropped to 138.28.
Japanese trade balance increased in February to 0.68 yen from 0.20 billion in January. It predicted 0.55 billion yen. Index of all industrial activities in Japan in February increased to 0.1% to minus 0.2% in the last month.It was in line with the forecasts.
Sales of existing homes in the US fell in February by 3.7% to 5.48 million units from 5.69 million in the previous month.Economists expected a decline to 5.57 million units.US home price index remained unchanged in February after rising 0.4% in the previous month.Analysts had expected growth of 0.4%.