Welcome to the easyMarkets weekly review where we look back over the results of some of the previous week’s economic indicators. It gives us the chance to reflect on how much expectations were met or missed and to examine a successful trade you could have made this week.
Event: China Gross Domestic Product (Q2)
Date: Monday 17 July 2017 at 02:00 GMT
Markets affected: CNY /USD
Trending hashtags: #cny, #gdp
China’s GDP came in 1% better than expectations as the world’s second largest economy continued to outpace forecasts for the last 18 months. China’s economy grew 6.9% for Q2 hitting Beijing’s target of 6.5% to 7% year-on-year growth. Industrial growth for May also surpassed expectations at 7.6% against an expected figure of 6.5%. Retail sales rose in June to 11% on an annualised basis versus the 10.6% forecast and annual urban investment came in at 8.6% for the first half of the year.
Event: EU Consumer Price Index (June)
Date: Monday 17 July 2017 at 09:00 GMT
Markets affected: EUR /USD, EUR/GBP
Trending hashtags: #eur, #cpi
The euro got a boost on Monday as inflation figures for June were confirmed. The Consumer Price Index (CPI) hit the anticipated 1.3% growth for last month on a year by year basis. Core CPI gave no surprises showing growth of 1.2% on an annualised basis. The markets remained fairly calm on the result as they awaited ECB’s President Mario Draghi’s speech on Thursday.
Event: NZ Consumer Price Index
Date: Monday 17 July 2017 at 22:45 GMT
Markets affected: NZD /USD, AUD/NZD
Trending hashtags: #nzd, #cpi
The kiwi took a bit of a tumble later on Monday evening (Tuesday morning local time) as CPI for the second quarter on the year came in at 1.7% versus the expected 1.9%. It was also down from the previous month’s 2.2%. The figure is still within the Reserve Bank of New Zealand’s target range for inflation of 1-3%. The NZ dollar fell against its major counterparts – the greenback and the aussie, but restored most of its positions by the end of the day.
Event: UK Consumer Price Index
Date: Tuesday 18 July 2017 at 08:30 GMT
Markets affected: GBP/USD, EUR/GBP
Trending hashtags: #gbp, #cpi
The sterling was pushing to break through the 1.31 mark on Tuesday but came under pressure following the release of the Consumer Price Index in the UK. CPI fell to 2.6% for the month of June, 0.3% less than the previous month and what the markets were forecasting. The main reason the pound fell on the news of weaker inflation is that it reduces the chances that the Bank of England will raise interest rates this year. A lower interest rate means less people are looking to buy the GBP due to getting a lower return on their investment.
Event: BoJ Interest Rate Decision
Date: Thursday 20 July 2017 at 02:00 GMT
Markets affected: USD/JPY
Trending hashtags: #yen, #jpy
As expected the Bank of Japan (BOJ) voted to maintain the current monetary policy on Thursday. Seven out of the nine decision makers of the central bank voted to retain interest rates in negative territory of -0.1% in an attempt to keep bolstering the world’s third biggest economy. Stock markets across Asia showed increases following the interest rate decision while the yen fell against the greenback. The central bank also reduced its outlook for inflation for the rest of this year and the next.
Event: ECB Interest Rate Decision
Date: Thursday 20 July 2017 at 12:30 GMT
Markets affected: EUR /USD, EUR/GBP
Trending hashtags: #eur, #interestrate
The euro continued its winning streak following Thursday’s speech by ECB President Mario Draghi. Mr. Draghi gave an optimistic outlook for economic growth in the Eurozone and confirmed the continuation of loose monetary policy. The current account balance for the region for the month of May came in at a better than expected €30.1 bn versus the outlook of €23.3 bn which also helped the euro increase on Thursday where it peaked at 1.1600.
Trade of the Week
Time in: Thursday 20 July 2017 at 12:00 GMT Market : EUR/USD Investment: $500 with 200:1 leverage Time out: Thursday 20 July 2017 at 14:45 GMT
P&L: $1,510
If you had bought the EUR/USD with a $500 margin at the price of 1.14839 and closed the deal after the ECB Interest Rate Decision on Thursday which saw the GBP fall 1.5%, you might have more than tripled your investment with a tidy $1,510 profit. Note this example does not take into account spread.
Risk warning: Forward Rate Agreements, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose. Our group of companies through its subsidiaries is licensed by the Cyprus Securities & Exchange Commission (Easy Forex Trading Ltd- CySEC, License Number 079/07), which has been passported in the European Union through the MiFID Directive and in Australia by ASIC (Easy Markets Pty Ltd -AFS license No. 246566).
Weekly Lookback
Welcome to the easyMarkets weekly review where we look back over the results of some of the previous week’s economic indicators. It gives us the chance to reflect on how much expectations were met or missed and to examine a successful trade you could have made this week.
China’s GDP came in 1% better than expectations as the world’s second largest economy continued to outpace forecasts for the last 18 months. China’s economy grew 6.9% for Q2 hitting Beijing’s target of 6.5% to 7% year-on-year growth. Industrial growth for May also surpassed expectations at 7.6% against an expected figure of 6.5%. Retail sales rose in June to 11% on an annualised basis versus the 10.6% forecast and annual urban investment came in at 8.6% for the first half of the year.
The euro got a boost on Monday as inflation figures for June were confirmed. The Consumer Price Index (CPI) hit the anticipated 1.3% growth for last month on a year by year basis. Core CPI gave no surprises showing growth of 1.2% on an annualised basis. The markets remained fairly calm on the result as they awaited ECB’s President Mario Draghi’s speech on Thursday.
The kiwi took a bit of a tumble later on Monday evening (Tuesday morning local time) as CPI for the second quarter on the year came in at 1.7% versus the expected 1.9%. It was also down from the previous month’s 2.2%. The figure is still within the Reserve Bank of New Zealand’s target range for inflation of 1-3%. The NZ dollar fell against its major counterparts – the greenback and the aussie, but restored most of its positions by the end of the day.
The sterling was pushing to break through the 1.31 mark on Tuesday but came under pressure following the release of the Consumer Price Index in the UK. CPI fell to 2.6% for the month of June, 0.3% less than the previous month and what the markets were forecasting. The main reason the pound fell on the news of weaker inflation is that it reduces the chances that the Bank of England will raise interest rates this year. A lower interest rate means less people are looking to buy the GBP due to getting a lower return on their investment.
As expected the Bank of Japan (BOJ) voted to maintain the current monetary policy on Thursday. Seven out of the nine decision makers of the central bank voted to retain interest rates in negative territory of -0.1% in an attempt to keep bolstering the world’s third biggest economy. Stock markets across Asia showed increases following the interest rate decision while the yen fell against the greenback. The central bank also reduced its outlook for inflation for the rest of this year and the next.
The euro continued its winning streak following Thursday’s speech by ECB President Mario Draghi. Mr. Draghi gave an optimistic outlook for economic growth in the Eurozone and confirmed the continuation of loose monetary policy. The current account balance for the region for the month of May came in at a better than expected €30.1 bn versus the outlook of €23.3 bn which also helped the euro increase on Thursday where it peaked at 1.1600.
If you had bought the EUR/USD with a $500 margin at the price of 1.14839 and closed the deal after the ECB Interest Rate Decision on Thursday which saw the GBP fall 1.5%, you might have more than tripled your investment with a tidy $1,510 profit. Note this example does not take into account spread.
Risk warning: Forward Rate Agreements, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose. Our group of companies through its subsidiaries is licensed by the Cyprus Securities & Exchange Commission (Easy Forex Trading Ltd- CySEC, License Number 079/07), which has been passported in the European Union through the MiFID Directive and in Australia by ASIC (Easy Markets Pty Ltd -AFS license No. 246566).
https://www.fxstreet.com/economic-calendar
http://www.cnbc.com/2017/06/14/us-retail-sales-may-2017.html
The post Friday Lookback 21-07-2017 appeared first on Forex.Info.
Source: Easy Forex Forex.Info
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