Volatility will return with a bang this week with a number of economic data due this week. So you can say that this week is all about the fundamentals and they will be pretty much driving the markets. We will kick start that today with German CPI data and the forecast is once again for the nose dive print for this data. This will increase the pressure on the president of the ECB who is going to deliver more clear plan about his recently announced quantitative measures on Thursday. The Spanish flash PMI data is also due at 08:00 London time and a similar echo is also expected there.
Asian session mostly spent their time in the negative territory which was mainly led by the protest on the Hong Kong street. This has helped the ddollar to climb up again which could see a massive push as we walk towards the end of the week when the US non farm payroll data will be released. A strong reading of the US non farm payroll data will fuel the speculations for an increase in the interest rate once again.
Later on, we also have the UK mortgage approval data due and the forecast is for 666K which is slightly lower than the previous reading of 667K. There is no doubt that the recent measures announced by the BOE has tightened the grip around this data and it has made some what difficult for new buyers to obtain their mortgages. The net effect is a cool off in the property market for the time being which was on a very steep upwards path. As for the US, we also have core PCE price index data due at 13:30 London time and the forecast is for 0.0%. However it is the housing data and the personal I come and spending data which will grab more attention among traders by telling us where the exact confidence is among traders. The forecast for the pending home sales data is -0.4% and for the personal income and spending is 0.3% and 0.5% respectively.
Disclaimer: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.