Weekly High Impact News Preview
As we forge ahead into another week of January, a variety of critical economic data points are set to be released, likely to stir the financial markets. Here's what investors and traders should be on the lookout for:
Inflation and Consumer Data to Lead the Charge
Starting Tuesday, the US Producer Price Index excluding Food and Energy for December will offer insights into wholesale price movements, a key indicator of inflationary pressures.
Moving into Wednesday, all eyes will be on the UK as the Consumer Price Index data for December comes out. Both the month-over-month and year-over-year figures will provide a clear picture of inflation trends in the British economy, alongside the Core CPI, which excludes volatile items like food and energy.
The US will also report its Consumer Price Index on Wednesday, with expectations set on both the general and core indices. These readings are pivotal for gauging the inflation trajectory, which heavily influences Federal Reserve policy decisions.
Employment and Retail Sales to Provide Economic Clues
Thursday brings significant data from Australia, with the Employment Change and Unemployment Rate for December shedding light on the labor market down under. Given the economic challenges post-pandemic, these figures could impact the Australian dollar and investor sentiment around Australian assets.
Later in the day, the US will release December's Retail Sales data, including the Retail Sales Control Group, which is considered a more stable component of the total retail report. These statistics are crucial for assessing consumer spending, a major driver of the US economy.
China's Economic Health in Focus
Friday will be particularly important for market watchers interested in Asia, as China releases its Gross Domestic Product figures for the fourth quarter, along with December's Industrial Production and Retail Sales. These datasets will help gauge the strength of the Chinese economy, which has global implications, especially amid ongoing trade tensions and regulatory shifts.
Conclusion
This week’s high-impact economic releases will provide valuable insights into global inflation trends, consumer behavior, and overall economic health. Traders should prepare for potential volatility and consider the implications of these data points on their strategies.