Morning Note: U.S. Unemployment and Retail Sales Data Drive Market Focus

U.S. Unemployment Claim and Retail Sales Data in Focus

Core U.S. inflation was 0.2% in December, matching forecasts but lower than November's 0.3%. The annualised core inflation rate currently stands at 3.2% but was slightly lower than what economists had predicted in December at 3.3%. Unemployment claims will be released today, with an expected increase to 210,000, up from the previous rise of 201,000. Additionally, core retail sales are expected to decrease from 0.5% to 0.2%. However, overall retail sales are anticipated to drop from 0.6% in December to 0.7% in November, due to the sales are mainly being driven by the automobile sector.

(U.S Core Retail Sales m/m Chart, Source: Markets.com)

(US Dollar 4H Price Chart, Source: Markets.com)

From a technical analysis perspective, the overall trend of the US dollar remains bullish, as indicated by the formation of higher highs and higher lows within the ascending channel. After retesting the channel support, it recently found support and rebounded with significant bullish momentum following a liquidity sweep, as indicated by the long wick candle. The price managed to stay within the rectangular zone; therefore, it is highly likely to continue its bullish movement.

UK GDP Data Remain Pivotal Amid Rate Decline

The UK data release has acquired increased significance after the sharp decline of interest rates and slightly falling inflation on Wednesday. Today’s GDP data will present a big picture of the economy's construction, industrial activities, and manufacturing sectors. Strong numbers may well boost market sentiment, with December GDP forecast to rise to 0.2% from November's -0.1%.

(U.K. GDP m/m Data, Source: Markets.com)

(GBP/USD 4H Price Chart, Source: Markets.com)

From a technical analysis perspective, the overall trend of GBP/USD remains bullish, as indicated by the formation of higher highs and higher lows within the ascending channel. It recently found support and rebounded from the previous support zone, driving the price upward. If the price can form higher highs and break through the ascending channel to the upside, it may continue to challenge the rectangular resistance zone above.

UnitedHealth Group Faces Challenges Ahead of Financial Results

On the tapes, here comes UnitedHealth Group to unveil its financial results, one and a half months after the grievous shooting of the head of its health insurance unit billed in brand new discounts for the company. The fact that the UnitedHealthcare CEO, Brian Thompson, was shot down on the sidewalk has caused great public uproar and posed big troubles for UnitedHealth and its peers.

UnitedHealth, the largest healthcare company in the country, has been facing additional troubles lately; the earnings per share is expected to be $6.73 per share, with sales of $101.6 billion for the fourth quarter. In addition, the medical loss ratio makes an expected conclusion of 86.1%, which measures the ratio of premium insurers' outlay to cover medical expenses.

(UNH Stock Daily Price Chart, Source: Markets.com)

From a technical analysis perspective, the current trend of the US dollar remains bullish, as indicated by the formation of higher highs and higher lows within the ascending channel. It found support at the previously strong support level, driving the price upward and approaching the previously broken structure. Significant bullish momentum is required to break through this crucial level.