Earning reports, Retail sales, and market reactions!

Chinese GDP and Inflation data, UK GDP, Euro Zone CPI, and retail sales from the U.S., E.U., and New Zealand will be the most critical data of the week ahead, while the U.S. first-quarter earnings season of 2021 also will be started, mostly with Banks from this week. Let's check out the week ahead events with more details and market reactions on them.

Chinese data and Energy Market. (Tuesday and Friday)

Tuesday, Export, Import, and Trade Balance data for March and Friday, china due to publish Q1 GDP and March retail sales. The Chinese economy is likely to benefit from solid recovery expectations in the U.S., vaccinations' progress, and entering the warmer months, and the economic reopening all around the globe that help to see more progress throughout the summer months. These hopes must confirm the recent month's improvement in Chinese exports and imports, while domestic demand also growing faster than before.

More economic recoveries, especially in China, as a world's largest factory and the second economy, will push the Oil market forward, if there will not be another factor, like geopolitical news and events, to make the market price lower, economic data expecting to support the demand higher priced back above $60 for Oil.

U.K., GDP, Sterling and GB100 (Tuesday)

UK GDP is expected to rise and improve in February, after a .9% contraction in January. Since the latest data were much better than expectations, with an increase in February numbers, Q1 is likely to be much better than the -4% slowdown of earlier BoE expectations. U.K. stock markets are supposed to get the advantage of these data and move forward. Currently, futsie trades at its higher level since last February; it is likely to see the pre-pandemic levels in coming months. Pound is currently trading in a clear downtrend and a key level of 1.37. The positive reaction of stock markets will keep the pressure on Pound.

Euro CPI and Retails sales (Monday and Friday)

In Euro Zone, CPI data, which we are waiting on Friday, expected to be unchanged, while Core inflation should drop back to 0.1% in March, from 1.0% in February. Same as the U.S., in Eurozone, also the risk of higher inflation is worrying market participants. On the other hand, February Retail Sales expecting to have a 1.5% gain, after 5.9% contraction of last month. However, since another wave of Lockdowns started in March, a lower increase or decline is much more expected for March and April.

Euro lowered under key level of 1.20 in last weeks and after stronger dollar. However, with weaker European data and delay in vaccination, Euro was a bit under pressure. This week still rebound unlikely, especially as long as trading under 1.22 against the U.S. dollar.

U.S. data! And US Dollar Index (Tuesday & Thursday)

In the United States, we are waiting for Commerce Department data in the coming week, which should give a clearer view of inflation and economic growth. For inflation, after a bit of decline in Bond Yields and Mr. Powell's speech, the market got a bit confident about higher inflation, which sent the U.S. dollar to a lower level; however, the risk of more elevated and unexpected inflation still there. With the better data that we are expecting to see from U.S. retail sales, jobless claims, building permits, and housing starts, we are hoping to see the U.S. dollar index to back on track, especially as long as it is trading above 92.00

Earnings Season Kicks Off (During the Week)

U.S. Q1 earnings season will start this week, with primarily financial enterprise reports. We are waiting for: JP Morgan, Wells Fargo, and bank of America to start the reports of the financial group, while we should not forget about United healthcare and Delta Airlines as well. In the U.S. stock markets, after the Biden's latest stimulate packages and new records in Dow Jones and SP500, with the positive market sentiment about earning reports, we are expecting more gain in Wall Street leading indices.