Look ahead: Japan inflation; German and US consumer confidence; Puma; eBay
USD/JPY in focus ahead of Japanese inflation data due on Tuesday. The dollar could also be volatile in a week where investors get consumer confidence, PCE, and GDP data from the US.
Germany also releases its latest consumer morale print. On the earnings front, the big names include Munich Re, Puma, and eBay.
(AI Video Summary)
The impact of Japanese inflation
In Japan, it is expected that inflation numbers will weaken, which could complicate the Bank of Japan's plan to end negative interest rates. This means that the value of the Japanese yen has already fallen more than 6% compared to the US dollar this year, and Japan is currently experiencing a technical recession. If inflation continues to be low, it will make it more difficult for the Bank of Japan to end negative interest rates anytime soon.
German and US consumer confidence
In Germany, the consumer confidence reading for March is predicted to be negative 29. This indicates that consumers in Germany are feeling pessimistic about the economy. Meanwhile, in the US, there are several economic updates to look out for. These include information about durable goods orders, the FTPK Shiller home price index, consumer confidence numbers, and the API crude oil inventories. The value of the US dollar is currently falling in anticipation of a week full of inflation-related announcements.
One important announcement to watch out for is the core PCE index, which is the Federal Reserve's preferred measure of inflation. It is expected to show a 0.4% increase on a monthly basis. If inflation is stronger than anticipated, it could lead to the Federal Reserve keeping interest rates low for a longer period of time.
Earnings reports
In addition to inflation data, there will also be other economic updates later in the week in the US, such as GDP and jobless claims numbers. On the earnings front, companies like Aberdeen, Smith & Nephew, Puma, Edenred, eBay, American Electric Power, Virgin Galactic, and Urban Outfitters will be reporting their fourth-quarter financial results. eBay, in particular, has been following a trend channel but is now indicating a potential upward move with the formation of a wedge pattern.
In summary, these upcoming events are important to watch as they can have a significant impact on the global economy and financial markets.
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