UK CPI data the key focus in the European morning
Good day, everyone! Hope you're all doing well as we look to get things going in the session ahead. It's been a modestly quiet start to the day but the market is faring a little better as China reports that coronavirus cases outside of Hubei continue to slow down.
Risk is performing a little better after a more sluggish day yesterday, with yet another late surge in US stocks - Nasdaq closed at flat levels - is also giving some added encouragement to investors on the new day.
As such, Asian equities are sitting higher with bonds trading more steadily so far today. That is helping to see the yen a little lower with USD/JPY back around 110.00 now.
Looking ahead, risk will still remain a key focus but so will the pound as we will have to go through UK inflation data this morning.
0900 GMT - Eurozone December current account balance
Prior release can be found here. A general indication of flows in/out of the euro area economy. A minor data point.
0930 GMT - UK January CPI figures
0930 GMT - UK January PPI figures
Prior release can be found here. After the drop in December, inflation pressures are expected to rebound in January and that should give pound traders more reason to keep the currency steady ahead of retail sales data tomorrow and PMI data on Friday. Barring a major hiccup, I wouldn't expect the release to precipitate any major gains with cable price action limited by the 200-hour moving average (downside) and resistance around 1.3050-70 (upside).
1000 GMT - Eurozone December construction output
Prior release can be found here. An indication of factory activity in the euro area towards the end of last year. A lagging data point as we already had Q4 GDP data.
1200 GMT - US MBA mortgage applications w.e. 14 January
Weekly US housing data, measures the change in number of applications for mortgages backed by the MBA during the week. Not the biggest of data points, but a general indicator of the housing sector sentiment.
That's all for the session ahead. I wish you all the best of days ahead and good luck with your trading!
