Ahead of the coming week, here is a list of the biggest events on the economic calendar that are most likely to affect the markets this week:
1. German Q4 GDP & ZEW Economic Sentiment
Germany will publish a report on fourth-quarter economic growth on Tuesday at 07:00 GMT. The forecast is to expand 0.5% in the October-December period, compared to growth of 0.2% in the preceding quarter.
Later on Tuesday at 10:00 GMT. Germany will release data on its ZEW Economic Sentiment. Analysts expect a decline to 15.0 from 16.6 a month earlier.
2. UK CPI, Employment & Retail Sales for January
The UK will release data on consumer price inflation for January on Tuesday at 09:30 GMT. Analysts expect consumer prices to rise 1.9%, after increasing 1.6% a month earlier.
On Wednesday, the UK will release data on Claimant Count Change. Analysts expect a rise to 0.8 from -10.1 a month earlier.
On Friday, the ONS will produce a report on January retail sales at 09:30 GMT. Analysts expect a rise to 0.9% from -1.9% a month earlier.
3.Fed Chair Yellen Testifies
Yellen will testify on the economy before the Senate Banking Committee on Tuesday at 15:00GMT. On Wednesday, she will appear in front the House Financial Services Committee also at 15:00GMT… volatility is expected…
4. U.S January Inflation & Retail Sales
The U.S will publish January inflation figures at (13:30GMT) on Wednesday. Market analysts expect consumer prices to rise 0.3%, while core inflation is forecast to increase 0.2%.
The U.S will publish data on January retail sales on Wednesday at 13:30 GMT. Analysts expect a decline to 0.1% from 0.6 a month earlier.
- Rising inflation would be a motivation to push the Fed toward raising interest rates. (Raising rates means strong USD).
- Rising retail sales means a strong economic growth, while weaker sales signal a declining economy. (Rising retail sales means strong USD).