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#1 15-02-2021 18:21:35

johnedward
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From: Paris - France
Registered: 21-12-2009
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EUR/USD: what are the main trading events this week?

EUR/USD: what are the main trading events this week?


The trading week started with a... break. Yesterday was President's Day in the US, so US banks were closed and no important economic data came out. In Europe, things were much the same, although there weren't any holidays at all.

What's in store for currency traders this week?

Last week was the quietest trading week of 2021 so far. Admittedly, there aren't many weeks to compare, but the VIX (i.e. the volatility index) on the US stock market still reached extremely low levels. Since the U.S. stock market is one of the drivers of volatility in the forex market, the lack of activity has spilled over into the forex. Unless something unusual happens this week, the chances are that things will continue in the same direction, as the week ahead is light in terms of economic report releases.

Today will be third level data for the London session (e.g. Eurozone flash GDP, German ZEW), and in the US, the only event to be taken into account is Daly's Fed speech. Daly is scheduled to speak on the economy and monetary policy at an event organised by the University of San Francisco. As questions from the audience are expected, the markets could move on some interesting remarks if necessary.

Starting on Wednesday, some interesting data will be released: the CPI in the UK, retail sales in the US and, later in the North American session, the FOMC meeting minutes.

Of the three, it is the minutes that will probably create the most volatility in the market, not because they will offer anything new, but because the market usually holds on to the minutes in case there are any surprises.

The trading week ends with Flash Services and Eurozone Manufacturing PMI, as well as UK Retail Sales. This is top-notch data, and if the market doesn't move until Friday, the data is enough to provide the necessary impetus.

All in all, an interesting week ahead, with a joker - the Fed's Monetary Policy Report. It is supposed to be released at this time of year, but was not released last week. If it is released this week, the volatility of the U.S. dollar is poised to increase.

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