US: Key events for next week - Danske Bank

Matías Salord FXStreet

Analysts from Danske Bank take a look into next week key events, that includes a major speech from US President Trump.

Key Quotes:

“In the US, Donald Trump is set to give a speech at a joint session in Congress. A few weeks ago, Donald Trump promised that he would announce ‘something phenomenal in terms of tax’ and we believe that he is likely to use this opportunity to reveal some of his thoughts on the topic.”

“PCE core inflation for January is due to be released on Wednesday. PCE inflation has been quite flat at around 1.7% since August with no clear trend. We estimate PCE core was 0.25% m/m and 1.7% y/y in January. However, given that CPI for January came out higher than expected, there may be upside risk to these estimates."

“On Monday, capital goods orders data for January is due out. These figures will give us a first impression of whether investments continue to gain momentum as seen during the second half of 2016. On Wednesday, ISM manufacturing for February is due out.”

“Tuesday brings Conference board consumer confidence for February. The University of Michigan consumer confidence fell a bit in February, but this just closed the small gap between the two numbers. Hence, we are looking for a more or less unchanged Conference board index in February.”

“Several speeches are due to be given by members of the FOMC, including a speech by chair Janet Yellen in Chicago on Friday. Based on the FOMC minutes, only ‘a few’ FOMC members seem ready to hike in March.”

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD tests nine-day EMA support near 1.1850

EUR/USD inches lower during the Asian hours on Monday, trading around 1.1870 at the time of writing. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming improving momentum. RSI has cooled from prior overbought readings but stabilizes above 50, suggesting dips could stay limited before buyers reassert control.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold slides below $5,000 amid USD uptick and positive risk tone; downside seems limited

Gold attracts fresh sellers at the start of a new week and reverses a part of Friday's strong move up of over $150 from sub-$4,900 levels. The commodity slides back below the $5,000 psychological mark during the Asian session, though the downside potential seems limited amid a combination of supporting factors.

Bitcoin, Ethereum and Ripple consolidate within key ranges as selling pressure eases

Bitcoin and Ethereum prices have been trading sideways within key ranges following the massive correction. Meanwhile, XRP recovers slightly, breaking above the key resistance zone. The top three cryptocurrencies hint at a potential short-term recovery, with momentum indicators showing fading bearish signs.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.