The Week Ahead – 14th August 2023

Justin Freeman

Reports Due on Underlying Economic Situation

FOCUS ON: Reports Due on Underlying Economic Situation

  • Inflation, unemployment, and sentiment reports due out in the UK, Eurozone, and Japan
  • Minutes of the US Federal Reserve’s last meeting also due to be released
  • Key technical support/resistance levels coming into play

The coming week sees the release of reports on the underlying health of the global economy. Inflation, GDP, sentiment, and unemployment data updates are due from countries around the globe.

Forex

GBPUSD

The price of GBPUSD softened last week thanks to a better-than-expected inflation report. That has led some to think the hawkish policy of the Bank of England might not be as long-lasting as previously expected. Updates on unemployment, inflation, and retail sales are due this week and will offer further insight into what form future BOE interest policy might take.

Daily Price Chart – GBPUSD Chart – Daily Price Chart – Wedge Pattern

gbpusd daily chart august 14 2023

Source: IG

GBPUSD Chart – Hourly Price Chart

gbpusd hourly chart august 14 2023

Source: IG

Economic data report likely to influence the value of GBP currency pairs:

  • Tuesday 15th August – ​ 7:00am BST – UK employment data. June unemployment rate expected to hold at 4%. Average earnings, including bonuses, are forecast to rise 6.8%.
  • Wednesday 16th August – ​ 7:00am BST – UK CPI (July). Prices in the UK are expected to rise 7.4% year-on-year, from 7.9% in June, and 0.1% month-on-month, in line with the previous month.
  • Wednesday 16th August – ​ 7:00pm BST – FOMC minutes. Further insight into the July meeting when the Fed decided to raise rates by 25bps.
  • Friday 18th August – ​7:00am BST– UK retail sales (July). Analysts expect sales to rise 0.7% month-on-month.

EURUSD

In a week with little euro-specific news, analysts will continue digesting the EU GDP figure and German unemployment numbers released last week. The dollar leg of the EURUSD currency pair can be expected to fluctuate in price when key US inflation data is released at the end of the week.

EURUSD Chart – Daily Price Chart

eurusd daily chart august 14 2023

Source: IG

EURUSD Chart – Hourly Price Chart

eurusd hourly chart august 14 2023

Source: IG

Economic data report likely to influence the value of EUR currency pairs:

  • Tuesday 15th August – ​ ​10:00am BST – German ZEW index (August). Sentiment index expected to fall to -16.
  • Wednesday 16th August – ​ 7:00am BST – UK CPI (July). Prices in the UK are expected to rise 7.4% year-on-year, from 7.9% in June, and 0.1% month-on-month, in line with the previous month. Currency pair to watch EURGBP.
  • Wednesday 16th August – ​ 7:00pm BST – FOMC minutes. Further insight into the July meeting when the Fed took the decision to raise rates by 25bps.

Indices

S&P 500

The earnings season is drawing to a close, with the big-name grocers, Target and Walmart, announcing their figures later this week. Stock sentiment has cooled since the early earnings announcement triggered a run into risk-on assets, and the Fed’s release of meeting minutes on Wednesday will allow traders and analysts a chance to consider long-term macro factors.

S&P 500 Chart – Daily Price Chart – Key Support Levels

sp500 daily chart august 14 2023 key support levels

Source: IG

S&P 500 – Hourly Price Chart

sp500 hourly chart august 14 2023

Source: IG

Economic data report likely to influence the value of US stocks:

  • Tuesday 15th August – ​ 7:00am BST – UK employment data. June unemployment rate expected to hold at 4%. Average earnings, including bonuses forecast to rise 6.8%. Currency pair to watch GBPUSD.
  • Tuesday 15th August – ​ 1:30pm BST – US retail sales (July). Sales expected to rise 0.3% month-on-month.
  • Wednesday 16th August – ​ 7:00pm BST – FOMC minutes. Further insight into the July meeting when the Fed took the decision to raise rates by 25bps.

Companies releasing earnings reports this week:

  • Tuesday 15th August – Home Depot.
  • Wednesday 16th August – ​ Target, Cisco.
  • Thursday 17th August – ​ Walmart.

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 risk 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
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
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
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’
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
XM LogoYour capital is at risk
  • Low minimum deposit
  • Super- tight bid-offer spreads
  • Impressive trading platforms
  • Tier-1 regulators
  • Difficult to contact tech support
  • No Crypto