GBP/USD Weekly Forecast – 23 January – 27 Janaury

Events that marked the week:

Tuesday's session was marked by UK CPI and PPI figures as well as Theresa May's Brexit speech. The Consumer Prices Index (CPI) rose by 1.6% in the year to December 2016, compared with a 1.2% rise in the year to November. The rate in December was the highest since July 2014, when it was also 1.6%. Price movements for the majority of the broad groups of goods and services acted to increase the rate between November 2016 and December 2016. The main contributors to the increase in the rate were rises in air fares and the price of food, along with prices for motor fuels, which fell by less than they did a year ago.

AUD/USD Weekly Forecast – 23 January – 27 Janaury

Events that marked the week:

Focus of the Thursday's session was on Australian job figures. Australian employment increased 8,200 to 11,966,800 in trend trms. Unemployment increased 3,200 to 725,700. Unemployment rate remained steady at 5.7%. Participation rate remained steady at 64.6%. Monthly hours worked in all jobs increased 2.3 million hours to 1,669.1 million hours. In seasonally adjusted terms employment increased 13,500 to 11,985,900. Full-time employment increased 9,300 to 8,176,500 and part-time employment increased 4,200 to 3,809,500.

USD - Major events in the week ahead

Events that marked the week:

On Tuesday Empire State Manufacturing Index data was published. Business activity continued to grow modestly in New York State, according to firms responding to the January 2017 Empire State Manufacturing Survey. The headline general business conditions index was little changed at 6.5. The new orders index fell to 3.1, pointing to a small increase in orders, and the shipments index held steady at 7.3.

EUR/USD Daily Forecast – 02 January

From Eurozone, on Friday, Spanish CPI data was released. In December, Spanish CPI was eight tenths higher than in November. The annual rate of the leading indicator of the HICP was 1.4%. The estimated annual inflation of the CPI in December 2016 is 1.5%, according to the an advance indicator prepared by INE. This indicator provides an advance of the CPI which, if confirmed, would Increase of eight tenths in its annual rate, since in the month of November this variation was 0.7%. This increase is mainly explained by the rise in fuel prices (Diesel and gasoline) compared to the decline experienced last year. On the other hand, the annual variation of the leading indicator of the HICP 1.4%.