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Weekly Outlook | Stronger Dollar After Nfp Data
Updated Updated Tue, 2025 January 14 03:07
Important events this week:
Last week, the NFP- data came in much stronger than expected. With 256,000 newly created jobs instead of the 164,000 previously anticipated the Dollar quicky gained some pace. The momentum might also continue to offer a positive impact as the general trend of the Greenback seems to be favored by investors. Equities on the other hand continue to disappoint with major indices rather heading to lower levels. The stronger Dollar is likely going to be of major impact here. This week the calendar remains rather data- light so recent trends might be resumed. Furthermore, political sentiment in particular from the US might continue to move markets.
– UK – consumer prices index– The consumer prices indexfrom the UK is not expected to move markets much as the data is expected to remain at 2.6%. It might however be interesting to observe, whether another increase in prices after the rise from December can be seen. This could then help to GBP to push to the upside again.
The monthly chart of the GBPUSD currency pair might suggest that the pace with falling prices remains high. The current pressure towards the 1.2140 zone might cause a break towards much lower levels. However, if that area holds upside potential could also be seen again. A correction should be overdue as well. The index will be published on Wednesday, the 15th of January at 08:00 CET.
– US Consumer Price Index – Theimportant index of the biggest economy in the world is potentially going to move markets again. The figure from December had caused a push to the upside and for this month another rise from 2.7% to 2.9% is going to be expected. Previously producer prices already hinted to a rise in prices and it might also be interesting to read the incoming PPI data on Tuesday. In general, there might be further setbacks in the equity sector. Should the figure remain strong, the Fed might take more time to cut interest rates, which would cause borrowing rates to remain tight. This could have a negative impact on the Nasdaq technology index, as the cost for speculation does not get cheaper.
Despite the magnificent seven stocks continue to support the general index also falling prices should be factored in. The major technical resistance pattern on the monthly chart above with the pinbar candlestick pattern suggests that a decline in prices might be on the cards. In general, the major zone at 16,500 points could act as a support zone, should the markets indeed start to fall for now. The data will be published on Wednesday, 15th January at 14:30 CET.
