Key Economic Events and Reports of the Upcoming Week
On Monday, November 15, important data will be released on two Asian economies - Japan and China. These are data on GDP and industrial production. Market participants will assess the impact of increased inflation, including elevated prices of raw materials and components, on the economic activity of major Asian economies to determine when a tipping point in global expansion may come.
US retail sales for October will be the central report next Tuesday. Given the strong inflation in October, a positive surprise in the data is possible, as well as a moderately positive dollar reaction. The US currency is growing on expectations that the Fed will increase the pace of withdrawal of stimulus measures or hint at an early rate hike to limit the risk of inflation.
The CPI of the Eurozone and the UK will be of interest to market participants on Wednesday. The central banks of these countries are in no hurry to raise rates, but a strong surprise in inflation could narrow the gap in odds between the Fed and the ECB and the Bank of England, which could result in a rebound in EURUSD and GBPUSD and a bullish correction.
On Friday, it is worth paying attention to retail sales in the UK. These data have a great influence on the decisions of the Bank of England, which should provide a comfortable level of borrowing for the economy, which in turn depends on the level of consumer spending.
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