Friday 16-06-2017 Lookback
June 16, 2017 6:48 amVideo
Latest News
- Analysis of GBP/USD on April 26th. The pound trades on Friday without changes April 26, 2024
- USD/JPY: Simple trading tips for novice traders on April 26th (US session) April 26, 2024
- GBP/USD: Simple trading tips for novice traders on April 26th (US session) April 26, 2024
- EUR/USD: Simple trading tips for novice traders on April 26th (US session) April 26, 2024
- GBP/USD: trading plan for the US session on April 26th (analysis of morning deals). The pound attempted, but it didn’t go April 26, 2024
- EUR/USD: trading plan for the US session on April 26th (analysis of morning deals). The euro continues to rise April 26, 2024
- Trading Signals for GOLD (XAU/USD) for April 26-29, 2024: buy above $2,324 and sell below $2,352 (21 SMA – 6/8 Murray) April 26, 2024
- Technical Analysis – AUDUSD set to complete best week of the year April 26, 2024
- Will Apple finally drop its AI hint? – Stock Markets April 26, 2024
- Bitcoin slips as markets pare back Fed rate cuts – Crypto News April 26, 2024
- EUR/USD. April 26th. Bulls continue to advance after the GDP report April 26, 2024
- Can Chinese PMIs solidify the economy’s recovery prospects? – Preview April 26, 2024
- Weekly Forex Outlook: 26/04/2024 – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too April 26, 2024
- XM’s Lombok Collaboration: Brightening Futures April 26, 2024
- Week Ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too April 26, 2024
- Market Comment – Yen keeps sinking after Bank of Japan decision April 26, 2024
- Fed faces dilemma amid sticky inflation and slowing economy – Preview April 26, 2024
- USD/JPY: trading tips for beginners for European session on April 26 April 26, 2024
- GBP/USD: trading tips for beginners for European session on April 26 April 26, 2024
- EUR/USD: trading tips for beginners for European session on April 26 April 26, 2024
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.
Consumer prices increased higher than expected in May confirming the Bank of England’s outlook of inflation surpassing their preferred 2% target. The news sent the cable higher on Tuesday, hitting a session high of 1.2740. CPI increased 0.3% for the month of May and 2.9% on an annual basis according to the Office for National Statistics. Economists’ mid-term outlook for inflation rose to 2.7% annually. The producer price index also rose 2.8% on an annual basis, slightly weaker than the expected 2.9% and retail sales rose 3.7% on an annualised basis, moderately above the 3.5% prediction.
Retail sales in the US dropped 0.3% in May, their largest fall in over a year. Decreasing motor vehicle sales and discretionary spending are the main reasons behind the fall according to the Commerce Department. The reduction was the biggest since January of last year and took analysts by surprise who had been forecasting a 0.1% increase.
The Consumer Price Index for the US fell to -0.1% taking many by surprise as expectations had been for it to reach 0.2%. The USD tumbled on the poor inflation data. Falling gasoline prices are being blamed as they dropped 5.4% in April. On an annualised basis CPI grew 1.9%.
The US Federal Reserve rose interest rates as most had been anticipating by 0.25% bringing the rate to 1.25%. The US dollar index, which is measured against a basket of other currencies, rose on the news by 0.4% to 97.31. The Fed commented on one more rate hike is likely for the year and outlined their plan for normalising monetary policy including reducing the balance sheet which has reached $4.5 trillion.
As expected the Bank of England (BOE) maintained the interest rates policy. However, three members of the Monetary Policy Committee (MPC) called for a rate hike – that’s 2 more than what many were expecting to share this view. With Inflation hitting four year highs, there is increasing pressure on the BOE to take action.
If you had bought the EUR/USD with a $500 margin at the price of 1.12782 and closed the deal after the Fed interest rate decision on Wednesday which saw the USD gain 1.22%, you might have more than doubled your investment with a tidy $1,222 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 16-06-2017 Lookback appeared first on Forex.Info.
Source: Easy Forex Forex.Info
Related Posts: