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: US Durable Goods Orders (January 2017) Date: Monday 27 February 2017 at 13:30 GMT Markets affected: EUR/USD, GBP/USD, USD/JPY Trending hashtags: #usd
Durable Goods Orders out of the US rose by 1.8%, a fraction above the expected rise of 1.7%. Orders of long-lasting goods rose the most in January than for over the previous three months due to an increase in aircraft orders for both commercial and military use. If the transportation section is excluded, the Orders would actually have declined by 0.2% with a decline in business investment of 0.4%.
Event: US Consumer Confidence (February 2017) Date: Tuesday 28 February 2017 at 15:00 GMT Markets affected: EUR/USD, GBP/USD, USD/JPY Trending hashtags: #usd
January’s lacklustre Consumer Confidence was all but forgotten during Tuesday’s announcement which saw Confidence for February surge to 114.8, the highest level in 15 years. A better jobs market has seen the unemployment rate below 5% and wage growth. While the US economy has grown steadily over the last few years it has been at its slowest rate for the last 11. Economists are quick to point out that while Consumer Confidence is up, it may not equate to the economy itself meeting that expectation.
Event: Australian GDP Data (Q4 2016) Date: Wednesday 01 March 2017 at 00:30 GMT Markets affected: AUD/USD, EUR/AUD, AUD/JPY Trending hashtags: #aud , #gdp, #aussie
The Australian economy showed a return to form with a 1.1% growth for the last quarter of 2016 beating expectations of 0.7%. Q3’s drop of 0.5% took the markets by surprise as the forecast for the Q was 0.2% growth. But with growing demand in commodities expectations were for the Q4 figure to get back on track and it did just that. On an annual basis GDP grew 2.4% and nominal GDP increased at a rate of 3% for the quarter – the largest rise since June 2010
Event: Bank of Canada (BOC) Interest Rate Decision Date: Wednesday 01 March 2017 at 15:00 GMT Markets affected: USD/CAD, EUR/CAD Trending hashtags: #loonie, #boc
The Bank of Canada kept its interest rate unchanged at 0.5% as was the consensus outlook of the markets. The Bank noted global uncertainties and potential downside risks may see a rate cut in the future. Even with an improved CPI showing inflation rising to 2.1% in January due to higher energy prices and improved employment figures, the Bank’s stance is keeping the loonie under pressure.
Event: US Initial Unemployment Claims (week ended 24 February) Date: Thursday 02 March 2017 at 13:30 GMT Markets affected: EUR/USD, GBP/USD, USD/JPY Trending hashtags: #usd, #unemployment
The number of people applying for the unemployment benefit for the first time for the week ended 24 February fell to 223,000 well below expectations and the lowest it’s been since 1973. Analysts were expecting a small dip to 233,000 from the previous figure of 244,000. With the unemployment rate at a low 4.8% and today’s claims hitting a 44-year low, there’s even more support for those expecting to see an interest rate hike by the Fed this March.
Trade of the Week Time in: Wednesday 01 March 2017 at 00:05 GMT Market : AUD/USD Investment: $500 with 200:1 leverage Time out: Wednesday 01 March 2017 at 02:00 GMT P&L: $751
If you had bought the AUD/USD with a $500 margin at the price of 0.76415 and closed the deal after the Australian GDP data announcement on Wednesday at 00:30 GMT which saw the Aussie rise by 0.7%, you might have made $751. Note this example does not take into account spread.
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.
Durable Goods Orders out of the US rose by 1.8%, a fraction above the expected rise of 1.7%. Orders of long-lasting goods rose the most in January than for over the previous three months due to an increase in aircraft orders for both commercial and military use. If the transportation section is excluded, the Orders would actually have declined by 0.2% with a decline in business investment of 0.4%.
January’s lacklustre Consumer Confidence was all but forgotten during Tuesday’s announcement which saw Confidence for February surge to 114.8, the highest level in 15 years. A better jobs market has seen the unemployment rate below 5% and wage growth. While the US economy has grown steadily over the last few years it has been at its slowest rate for the last 11. Economists are quick to point out that while Consumer Confidence is up, it may not equate to the economy itself meeting that expectation.
The Australian economy showed a return to form with a 1.1% growth for the last quarter of 2016 beating expectations of 0.7%. Q3’s drop of 0.5% took the markets by surprise as the forecast for the Q was 0.2% growth. But with growing demand in commodities expectations were for the Q4 figure to get back on track and it did just that. On an annual basis GDP grew 2.4% and nominal GDP increased at a rate of 3% for the quarter – the largest rise since June 2010
The Bank of Canada kept its interest rate unchanged at 0.5% as was the consensus outlook of the markets. The Bank noted global uncertainties and potential downside risks may see a rate cut in the future. Even with an improved CPI showing inflation rising to 2.1% in January due to higher energy prices and improved employment figures, the Bank’s stance is keeping the loonie under pressure.
The number of people applying for the unemployment benefit for the first time for the week ended 24 February fell to 223,000 well below expectations and the lowest it’s been since 1973. Analysts were expecting a small dip to 233,000 from the previous figure of 244,000. With the unemployment rate at a low 4.8% and today’s claims hitting a 44-year low, there’s even more support for those expecting to see an interest rate hike by the Fed this March.
If you had bought the AUD/USD with a $500 margin at the price of 0.76415 and closed the deal after the Australian GDP data announcement on Wednesday at 00:30 GMT which saw the Aussie rise by 0.7%, you might have made $751. Note this example does not take into account spread.
http://www.marketwatch.com/story/consumer-confidence-hits-15-year-high-2017-02-24
http://www.abs.gov.au/ausstats/[email protected]/Latestproducts/5206.0Main%20Features2Dec%202016?opendocument&tabname=Summary&prodno=5206.0&issue=Dec%202016&num=&view=
http://www.bankofcanada.ca/2017/03/fad-press-release-2017-03-01/
http://www.businessinsider.com/initial-jobless-claims-march-2-2017-2017-3
The post Friday 03-03-2017 Lookback appeared first on Forex.Info.
Source: Easy Forex Forex.Info
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