The Week Ahead – 13th February 2023

Justin Freeman

Author: Justin Freeman

Published:

US & UK Inflation Reports Dominate the Week’s News Flow

FOCUS ON: US & UK Inflation Reports Dominate the Week’s News Flow

  • US and UK Consumer Price Index (CPI) inflation data released on Tuesday and Wednesday
  • With inflation still guiding interest rate policy both reports have the potential to trigger market moves
  • US earnings season drawing to a close

Market attention turns back to inflation data this week. Rising prices triggered the cycle of interest rate hikes which characterised 2022. The upcoming report will give traders an idea of whether 2023 will be a case of ‘more of the same’.

  • Tuesday 14th February – 1.30 pm (GMT) US CPI Inflation Report for January 2023
  • Wednesday 15th February – 7.00 am (GMT) UK CPI Inflation Report for January 2023
  • Thursday 16th February – 1.30 pm (GMT) US PPI Inflation Report for January 2023

Forex

GBPUSD

The UK economy narrowly avoided confirming it was in a technical recession last week. The GDP data for Q4 2022 showed the economy flatlined rather than contracted, but the forecast for growth in 2023 remains pessimistic.

The CPI inflation report due on Wednesday can be expected to trigger moves in GBP currency pairs. With the Bank of England keeping ‘all options open,’ a surprise in either direction can be expected to lead to significant price moves.

Also, look out for UK monthly employment numbers to be released at 7 am on Tuesday 14th February and UK Retail Sales numbers due out at 7 am (GMT) on Friday 17th February.

GBPUSD Chart – Daily Price Chart

gbpusd mini daily price chart

Source: IG

GBPUSD Chart – Hourly Price Chart

gbpusd mini hourly price chart

Source: IG

EURUSD

Last week was a relatively quiet news week for euro traders, but that didn’t stop EURUSD from making some of the most dramatic moves in the forex market. The coming week again lacks any blockbuster announcements, which opens the door to key resistance/support levels and technical indicators coming into play.

EURUSD Chart – Daily Price Chart – Trendline and SMA Break

eurusd daily price chart trendline and sma break

Source: IG

EURUSD Chart – Hourly Price Chart

eurusd mini hourly price chart

Source: IG

Indices

S&P 500

US earnings season is drawing to a close. FAANG stocks and big banks have given their updates to investors, and this week’s highlights in terms of corporate news come from Coca-Cola (Tuesday), Cisco (Wednesday), and Dropbox (Thursday).

The US CPI inflation data due on Tuesday 14th February is the major economic report of the week. It can be expected to have far-reaching consequences for global equity markets.

S&P 500 Chart – Daily Price Chart –Trendline Break Followed by Sideways Trading

sp500 daily price chart trendline break followed by sideways trading

Source: IG

S&P 500 – Hourly Price Chart

sp500 hourly price chart

Source: IG

People Also Read:

 

Risk Statement: Trading financial products carries a high risk to your capital, especially trading leverage products such as CFDs. They may not be suitable for everyone. Please make sure that you fully understand the risks. You should consider whether you can afford to take the risk of losing your money.

Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.

Justin Freeman

About the author: Justin Freeman

Justin is an active trader with more than 20-years’ industry experience of working for big banks and hedge funds. He has an inside knowledge of how the financial markets work, thanks to roles including trader on a $750m Event-Arbitrage desk and CRO and COO of hedge funds running a variety of strategies. From stat-arb and trend-following CTA to fixed-income relative value. Firm’s he has worked at include big banks like Citi, and prominent hedge funds including D. E. Shaw and Millennium Capital Management.

Blackbull LogoYour capital is at risk
  • User-friendly platform with great trade-analysis tools
  • Leverage Up To 1:500
  • Spreads as low as 0.00 pips
  • Quality trade execution thanks to high-spec IT infrastructure
  • $0 minimum account opening balance
  • 26,000 tradeable instruments
  • Not available in all jurisdictions
  • Regulatory infrastructure
OPEN AWARD WINNING
DEMO ACCOUNT
Read Broker Review
tickmill_logo-173% of retail CFD accounts lose money 73% of retail C...
  • Well regulated
  • Ultra-fast and high leverage trading
  • Spreads as low as 0.0 pips
  • Comprehensive research tools
  • Relatively limited number of markets
  • Does not accept US traders
TEST TICKMILL
Read Broker Review
Your capital is at risk Europe* CFDs ar...
  • Multi-asset broker offering a wide variety of markets
  • Strong regulatory framework
  • Innovative risk management tools
  • Choice of market-leading platforms
  • Wide spreads on some markets
  • Expiry date on Demo Accounts
OPEN AWARD WINNING
DEMO ACCOUNT
Read Broker Review
Between 74-89% of CFD traders lose Between 74-89 % of retail investor accounts lose money when trading CFDs
  • Low trading costs
  • Great market flow
  • Research and analysis which helps spot trades
  • Wide range of Copy and Social Trading options
  • Limited range of non-forex markets
OPEN AWARD WINNING
DEMO ACCOUNT
Read Broker Review
eToro Logo77% of CFD traders lose 77 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
  • Social and Copy Trading Platform
  • Beginner Friendly
  • Risk-free Demo Account
  • Top-tier regulation
  • Limited means of raising queries
  • Withdrawal process isn’t really ‘client-focused’
OPEN AWARD WINNING
DEMO ACCOUNT
Read Broker Review