Look ahead: UK inflation & Cisco Q4
The UK, this week, has a considerable amount of data which will help us gauge the likelihood of any move in UK rates.
The strong jobs data has already seen GBP move up against a whole basket of other G7 currencies and Wednesday’s CPI can reinforce that move or turn it on its head. There is also eurozone GDP data for Q4. Earnings in the UK include Dunelm which, as IGTV’s Jeremy Naylor explains, will have to go some way to break above the descending trendline capping out recent gains. Then just one all-session stock to watch on Wall Street and that comes after the close on Wednesday.
(AI Video Summary)
UK economic data
For today's "Look ahead" to Wednesday, 14 February, there are some important events happening in the trading world that traders should keep an eye on. In the UK, there will be data releases for consumer prices and retail prices. These numbers are expected to have a big effect on the market and could be a turning point for the week. The UK will also release data for retail sales and GDP, which are also worth paying attention to.
The value of the British pound has already gone up because of good jobs data. If the inflation data is better than expected, the value of the pound could go up even more. One reason for this is that interest rates in the eurozone might be lowered sooner than expected, and that's making people buy more pounds. If the data this week suggests that interest rates won't be lowered as quickly, it could affect the exchange rate between the pound and the euro.
European Q4 GDP and industrial production data
In Europe, there will be data released for the fourth quarter GDP and industrial production. Even though the eurozone's economy is weak, the German DAX 40 stock index is doing well. In terms of company news, there aren't many big announcements expected, but Dunelm is a company to watch. Its stock has been trading below its previous highs and it will need a strong performance to break through its resistance. Other companies like Delivery Hero and Heineken will also be reporting their earnings and are worth keeping an eye on.
Cisco and Kraft Heinz to release Q4 earnings
In the US, Cisco and Kraft Heinz will be releasing their fourth quarter numbers. Cisco's stock may be particularly interesting because it offers extended trading hours, meaning you can buy or sell the stock after the company announces its results. Cisco had a big drop in its stock price after its last results, and there might be a pattern in its long-term chart that indicates more drops.
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