Financial
markets' participants will be on a date with a number of important economic
data this week, led by the growth data in the euro area and Britain and data released
by the United States, in addition to the continuous follow-up to the latest
developments of the deadly Corona virus.
US Dollar
The
movements of the US dollar this week will depend on the impact of economic data
from the world's largest economy, as well as any developments related to the
spread of the Coronavirus.
For
economic reports, the most important will be retail sales and inflation-related
reports, as well as Federal Reserve Chairman Jerome Powell testimony before the
House of Representatives.
Expectations
for retail sales, which largely reflect the size of household spending on goods
and services, indicate a 0.3 percent increase in January after recording the
same surge in December.
As
for the consumer price index, it may show a 0.1 percent rise in January and an
acceleration to 2.4 percent from 2.3 percent year-on-year.
Data
on the housing, manufacturing sector and consumer confidence may receive some attention
from investors.
Last
but not least, Powell is scheduled to testify about the semi-annual monetary
policy report before the House Financial Services Committee and the Senate
Banking Committee in Washington.
Pound Sterling
Sterling
investors and traders should keep their eyes open this week, as the UK will
release its preliminary GDP report for the last quarter of 2019.
The
British economy may have reported no growth during the last quarter after it
expanded by 0.4 percent in the quarter ended September, while the economy may have
recorded a growth rate of 0.4 percent in December.
Among
the most important data that will also be released this week from the British
economy are industrial production and the trade balance for December.
Euro
This
week, the euro’s movements will prebaby be affected by the release of important
economic data from the euro zone.
The
most important report will be the gross domestic product for the last quarter in
the euro area, where the second reading is expected to confirm growth by 0.1
percent after recording growth of 0.3 percent in the third quarter.
The
European Commission will also release its latest economic forecasts, which
include growth projections for European Union member states over the next two
years.
Commodities
Gold
prices retreated last week as the strength of the US dollar has reduced demand
for gold bullions as an alternative investment.
Gold
prices will depend this week on the important economic data issued by the major
economies, especially the US data, as well as the markets’ reaction to any
developments related to the Corona virus.
With
regard to oil, prices recovered from their lowest levels in one year at the end
of last week after Russia said it supports the recommendation of OPEC and other
producers to reduce oil production further, amid the declining demand for crude
oil as China continues to combat the Corona virus.
Oil price movements
will depend on the state of optimism or pessimism in financial markets in the
event of any developments regarding the virus, as well as the weekly US
government report on the change in US crude stockpiles.
