It is quite a big night/ morning ahead for markets, with crucial economic data releases and key speeches sure to keep traders busy.

The UK Unemployment Rate

Later tonight, the UK is reporting some important pieces of information. This includes: Average Earnings Index, Claimant Count Change, Unemployment Rate and CB (Conference Board) Leading Index. The earnings index, claimant count and unemployment figures are vital at getting a clearer picture of the labour market within the UK, especially as the country moves towards a future outside of the EU. The Average Earnings Index is crucial as it represents wage increases. This affects the standard of living within the UK. Rising wages can mean an increase in disposable income, which consumers can then use to spend on products/services, which in turn adds to growth in he economy and inflation.

The US Consumer Price Index (CPI)

The US is publishing a whole host of economic data that has the potential to move markets. This data includes: CPI & Core CPI, Retail & Core Retail Sales, Empire State Manufacturing Index, Capacity Utilisation Rate, Industrial Production, Business Inventories, NAHB Housing Market Index, Crude Oil Inventories and TIC Long-Term Purchases. The most important of these figures is the CPI and Retail Sales. CPI reflects inflation within the economy. This can reflect consumer sentiment within the economy – more confident and secure consumers tend to spend more money. Increased spending requires a gradual increase in prices for products and services so that supply can always meet demand. Not only could there be an increase in prices, interest rates can also rise as a result of inflation as the central bank looks to curb demand. Retail Sales is vital in the US economy as it is a main economic driver and a reflection of consumer confidence.

The Federal Reserve

Also of importance tonight is the continued testimony given by Fed Reserve Chair Janet Yellen. There has already been hints that the central bank is looking at raising rates throughout the year. The continuation of this language regarding rate rises that started when rates were lifted in December, is seen favourably by markets as it is providing certainty around monetary policy.

Elsewhere around the world, Europe is releasing Trade Balance data and Canada is announcing Manufacturing Sales figures. Finally, Fed Reserve Member Patrick Harker is also set to speak.

Featured image,  Janet Yellen Chair of the Federal Reserve. Image (c) CNN. Article is originally posted by Klimex Capital Markets.