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Current week review 14.08 – 18.08

This trading week will be a lot of interesting and important news, which can have a significant influence on currency pairs in the medium term. Most of this news is concentrated in the middle of the week, so the greatest activity will be during this period.

Inflation in the UK

On Tuesday, will be published big data block from the United Kingdom. It is expected that producer price indices will remain without significant changes, but the forecast for inflation is a slight increase from 2.6% to 2.7%. This can strengthen the position of the British currency and make the Bank of England return to consideration of the possibility of tightening monetary policy.

Retail Sales in the US

After the inflation data in the States were below forecasts, was returned the pressure to the US dollar. The forecasts for retail sales are quite optimistic, and if they will justify, the US dollar can quickly return the last losses.

Eurozone GDP

It is expected that the gross product in the European Union will remain at the previous values of 2.1%. This will allow the single currency not only to keep its positions, but also to strengthen against the basket of major currencies.

Retail Sales in the UK

In addition to inflation in the UK, important data will be retail sales, which will be released on Thursday. According to the forecast, the indicators will fall significantly, which will put pressure on the pound sterling.

Inflation in the Eurozone

The change in the consumer price index can greatly affect the single currency. The market expects when Mario Draghi will talk about changes in the quantitative easing program. If inflation in the EU will continue to recover the belief that the ECB will reduce the purchase of assets in the near future. That will push the euro for a new growth.