Important Events This Week Apr 8-12

FX Strategy Articles > FX-guides

The previous week was a flurry of big announcements that began with China’s Manufacturing Purchasing Managers Index, and was capped off later in the week by a trio of announcements made by the Bank of Japan, Bank of England, and the European Central Bank.

And while this coming week probably isn’t as busy as the last one, there are still a number of important updates that are worth looking into, which we have on our list below. Here are some of the important events for the week of Apr 8-12:

Event: Consumer Price Index (MoM) – China

Date: April 9, 2013

Time: 1:30am (GMT)

What It Is About and Why It’s Important

Last week, China announced a slight increase in its Purchasing Managers Index from 50.1 to 50.9. And although this was below the 51.2 consensus, the announcement was received positively particularly by countries that trade with China.

Now as for its CPI, we will find out on Apr 9’s announcement whether the country can sustain the rise of the past 4 months (0.1 in Dec, 0.8 in Jan, 1 in Feb, 1.1 in Mar) or if it will dip by -0.6% as per the consensus.

Should the CPI rise further, this could indicate an inflation of the economy, which is positive for the CNY. The opposite is true if China’s CPI drops.

Event: Consumer Confidence Index (Mar) – Japan

Date: April 9, 2013

Time: 5:00am (GMT)

What It Is About and Why It’s Important

The Consumer Confidence Index (CCI) is an indicator of how the consumers view the economy. An upward trend suggests that there is an economic expansion, while the opposite is true when there is a downward trend. In general, any figure over 50 points gives a positive outlook of the economy, which is also positive for the local currency. Meanwhile, any figure below that suggests a negative one.

While Japan’s CCI has risen over the past two months (43.3 in January and 44.3 in February, up from December’s 39.2), it is still well below 50, suggesting that consumers still have a bearish outlook on their local economy. Whether or not the BoJ’s announcement last week to put rates on hold at near zero and to inject more money into the economy would create a positive impact on the CCI is yet to be seen.

Event: Consumer Price Index (YoY, Mar) – Germany

Date: April 11, 2013

Time: 6:00am (GMT)

What It Is About and Why It’s Important

Germany’s CPI has seen a steady drop over the past few months, from January’s 2.1 to 1.5 in February. Analysts expect it to drop further to 1.4, which indicates a negative trend in the purchasing habits of German consumers. If the announced CPI is equal or lower than the consensus, then it would create a negative effect on the EUR.

Event: Retail Sales (MoM, Mar) – United States

Date: April 12, 2013

Time: 12:30am (GMT)

What It Is About and Why It’s Important

The US economy continues to struggle, despite signs of slight recovery in some areas. And if the retail sales number for March drops to 0.2% from the previous 1.1%, then it would indicate that consumers are still less likely to spend, and it would have a negative impact on the USD.

By FX Strategy Team, Published on 7th of April 2013
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