While the statements coming from the White House are the most influential forex news on the performance of the markets, during the next week we are waiting for the most important event, which is the appearance of Federal Reserve Chair Janet Yellen before the Senate and House of Representatives to testify about the state of the economy and the country's financial policy, and the markets are also awaiting the release of some economic reports. The US data on inflation and retail sales and others, which may give some indications about the timing of raising interest rates, and at the same time we will be on the date of the release of consumer price reports, employment data and retail sales in the United Kingdom, which would give a clearer view of the state of the economy in light of the continuing impact of the separation from The European Union, and to explore more about the strength of the eurozone economy, traders are awaiting the release of preliminary data on economic growth for Germany during the last quarter of last year, due to be published next Tuesday, the same thing in Japan, where economic growth data is expected for the fourth quarter in light of fears of the appreciation of the yen. And its impact on economic growth rates during the coming period. In what follows, we will discuss These are the most important events of this week in some details:
1-Federal Reserve Chair Janet Yellen presents her testimony
Forex news followers are waiting for Federal Reserve Chair Janet Yellen to give her semi-annual testimony on the state of the economy and the country's fiscal policy, in her presence at the Senate Banking Committee on Tuesday at 15.00 GMT, and before the House Financial Services Committee on Wednesday. Markets follow Strongly Yellen’s highly anticipated statements that may indicate any new policy adjustments or the timing of raising interest rates, as the Federal Reserve proposed last December to raise interest rates three times during the current year, while traders are still skeptical about this statement and expect him to raise them only twice, and at a time Earlier this month, when the Federal Reserve decided to keep borrowing costs unchanged, it gave no firm indications about the timing of the rate hike.
2- US inflation and retail sales data for January
Important forex news to be expected is the release of January inflation and retail sales data from the US Department of Commerce next Wednesday. Consumer prices are expected to show a decrease of 0.3%, while core inflation is expected to rise by 0.2%.
The CPI is expected to rise by 2.1% on an annual basis, and the Fed considers core prices as a good indicator for measuring inflationary pressure in the long run as it aims to maintain the core inflation rate at 2% or less, and in the event of higher inflation, the Fed will pay for it raising interest rates.
As for retail sales, the report is expected to reveal an increase of 0.1% compared to last December when it increased by 0.6%, and the core sales volume is likely to increase by about 0.4% compared to its increase in December by 0.2%. Low sales rates are a sign of economic downturn and in the US consumer spending accounts for about 70% of the country's economic growth.
Some other US data is expected, including producer prices, industrial production, building permits, home construction, and initial jobless claims, as well as the returns of some companies such as Pepsi-Cola, Cisco, Kraft Heinz and AIG.
3- UK Consumer Price, Employment and Retail Sales data for January
The British Office for National Statistics is expected to release several data for January, including consumer price data on Tuesday at 09:30 GMT and an increase of 1.9% compared to December's increase of 1.6%, and monthly employment data will be released on Wednesday at 09:30 GMT, the unemployment rate is expected to remain at 4.8% and the wage and bonus growth rate will rise by 2.8%, and on Friday the retail sales report is expected, which is expected to rise by 1.0% compared to the decline recorded in December by 1.9%, the Bank of England has reinforced its expectations Regarding the rate of growth and inflation, while it did not seem that it will raise interest rates during the coming period.
4- GDP data for Germany and the Eurozone (Q4)
Traders are waiting for Germany, the largest economy in the eurozone, to publish a preliminary report on economic growth during the last quarter of last year, on Tuesday at 07.00 GMT, and its growth rate is expected to rise by 0.5% compared to a growth rate of 0.2% during the third quarter of last year. Following this report, the Eurozone will publish its revised report on the economic growth rate during the last quarter. Preliminary estimates published earlier indicated a rise in the region's growth rate by 0.5% compared to the third quarter's growth rate of 0.4%.
5- Japan GDP data (Q4)
Preliminary data on economic growth for the fourth quarter in Japan is scheduled to be released on Sunday at 23:50 GMT. The report is expected to show an increase in the growth rate of the Japanese economy by about 0.3% during that period, which may constitute pressure that calls for decision-makers to intervene to support the situation Japanese economist.
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