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: Bank of England’s Governor Carney Speech
Date: Monday 16 January 2017 at 18:30 GMT
Markets affected: GBP/USD, EUR/GBP
Trending hashtags: #boe, #gbp
Governor Mark Carney focussed his speech on consumer spending. British consumers are helping keep any Brexit backlash at bay with higher spending. During his speech at the London School of Economics, Carney warned that consumers are going into debt at a sensitive time with rising inflation and living costs due to a weak pound. The fear of the economy’s reliance on consumption means that it eventually outpaces earning, increases debt and makes overall demand more sensitive to employment and income changes.
Event: UK Consumer Prices (CPI)
Date: Tuesday 17 January 2017 at 09:30 GMT
Markets affected: GBP/USD, EUR/GBP
Trending hashtags: #boe, #gbp
UK Consumer prices for December came in at 1.6%, outstripping the previous month’s figure of 1.2%, surpassing analysts’ expectations of 1.4% and hitting two year highs. The post-Brexit weakness of the pound has continued to push up prices in the UK leading to the increase in inflation. Bank of England’s Governor, Mark Carney speech from the previous day forecasted increasing inflation and outlined some of the threats to UK consumers. The pound has been under pressure the last few days, falling below $1.20 until the Prime Minister, Teresa May, spoke on the Brexit, when the sterling recovered lost ground. Today’s CPI figure, combined with a raising inflation, may see the BOE consider increasing interest rates which may bring some life back to the pound.
Event: US Consumer Price Index (YoY, Dec)
Date: Wednesday 18 January 2016 at 15:30 GMT
Markets affected: EUR /USD
Trending hashtags: #usd , #cpi
Consumer Prices in the US came in at a constant 0.2% growth, the same as the previous month’s figure and what economists were expecting. The index is for all items excluding food and energy; increases were seen in motor vehicle insurance, medical care, education, airline fares, used and new cars, while decreases were seen in apparel and communication for December. CPI has been climbing over the previous six months, and has had the largest 12 month increase since mid-2014,
Event: Bank of Canada Interest Rate Decision
Date: Wednesday 18 January 2017 at 15:00 GMT
Markets affected: USD/CAD
Trending hashtags: #cad, #boc
While Bank of Canada Governor Stephen Poloz retained the interest rate, as expected, at 0.5%, he gave dire warnings for the economy if protectionist policies of US president-elect Trump are manifest. Combined with a struggling economy, he hinted at a potential interest rate cut as being on the cards. However, the pessimistic rhetoric from Poloz sent the CAD tumbling 1.5% against the US dollar, a 2-week low. With more key Canadian indicators due on Friday, alongside Trump’s inauguration, we may see more volatility for the Loonie.
Event: ECB Interest Rate Decision
Date: Thursday 19 January 2017 at 12:45 GMT
Markets affected: EUR/USD, EUR/GBP
Trending hashtags: #interestrate, #eur
Taking no one by surprise, the European Central Bank kept all benchmark interest rates unchanged. The main refi rate remains at 0.0% and deposit rate at -0.4%. The rates have been stable for almost a year now and the ECB sees no reason, at this juncture, to raise them any time soon. There were also no changes to the bond-buying programme for 2017, aside from the already announced reduction from 80 to 60 billion euros per month set to come in for April. The central bank did comment that the purchase programme may be increased or extended in duration if financial conditions change as it continues to target a 2% inflation rate. The euro saw no major moves post announcement and the EUR/USD remained around the 1.0660 mark.
Trade of the Week
Time in: Wednesday 18 January 2017 at 16:00 GMT Market : USD/CAD Investment: $500 with 200:1 leverage Time out: Wednesday 18 January 2017 at 21:00 GMT
P&L: $ 1,655
If you had bought USD/CAD with a $500 margin at the price of 1.30541 and closed the deal once after central bank Governor Poloz’ speech on Wednesday at 21:00 GMT which saw CAD drop 1.65%, you might have made $1,655. 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.
Event: Bank of England’s Governor Carney Speech
Date: Monday 16 January 2017 at 18:30 GMT
Markets affected: GBP/USD, EUR/GBP
Trending hashtags: #boe, #gbp
Governor Mark Carney focussed his speech on consumer spending. British consumers are helping keep any Brexit backlash at bay with higher spending. During his speech at the London School of Economics, Carney warned that consumers are going into debt at a sensitive time with rising inflation and living costs due to a weak pound. The fear of the economy’s reliance on consumption means that it eventually outpaces earning, increases debt and makes overall demand more sensitive to employment and income changes.
Event: UK Consumer Prices (CPI)
Date: Tuesday 17 January 2017 at 09:30 GMT
Markets affected: GBP/USD, EUR/GBP
Trending hashtags: #boe, #gbp
UK Consumer prices for December came in at 1.6%, outstripping the previous month’s figure of 1.2%, surpassing analysts’ expectations of 1.4% and hitting two year highs. The post-Brexit weakness of the pound has continued to push up prices in the UK leading to the increase in inflation. Bank of England’s Governor, Mark Carney speech from the previous day forecasted increasing inflation and outlined some of the threats to UK consumers. The pound has been under pressure the last few days, falling below $1.20 until the Prime Minister, Teresa May, spoke on the Brexit, when the sterling recovered lost ground. Today’s CPI figure, combined with a raising inflation, may see the BOE consider increasing interest rates which may bring some life back to the pound.
Event: US Consumer Price Index (YoY, Dec)
Date: Wednesday 18 January 2016 at 15:30 GMT
Markets affected: EUR /USD
Trending hashtags: #usd , #cpi
Consumer Prices in the US came in at a constant 0.2% growth, the same as the previous month’s figure and what economists were expecting. The index is for all items excluding food and energy; increases were seen in motor vehicle insurance, medical care, education, airline fares, used and new cars, while decreases were seen in apparel and communication for December. CPI has been climbing over the previous six months, and has had the largest 12 month increase since mid-2014,
Event: Bank of Canada Interest Rate Decision
Date: Wednesday 18 January 2017 at 15:00 GMT
Markets affected: USD/CAD
Trending hashtags: #cad, #boc
While Bank of Canada Governor Stephen Poloz retained the interest rate, as expected, at 0.5%, he gave dire warnings for the economy if protectionist policies of US president-elect Trump are manifest. Combined with a struggling economy, he hinted at a potential interest rate cut as being on the cards. However, the pessimistic rhetoric from Poloz sent the CAD tumbling 1.5% against the US dollar, a 2-week low. With more key Canadian indicators due on Friday, alongside Trump’s inauguration, we may see more volatility for the Loonie.
Event: ECB Interest Rate Decision
Date: Thursday 19 January 2017 at 12:45 GMT
Markets affected: EUR/USD, EUR/GBP
Trending hashtags: #interestrate, #eur
Taking no one by surprise, the European Central Bank kept all benchmark interest rates unchanged. The main refi rate remains at 0.0% and deposit rate at -0.4%. The rates have been stable for almost a year now and the ECB sees no reason, at this juncture, to raise them any time soon. There were also no changes to the bond-buying programme for 2017, aside from the already announced reduction from 80 to 60 billion euros per month set to come in for April. The central bank did comment that the purchase programme may be increased or extended in duration if financial conditions change as it continues to target a 2% inflation rate. The euro saw no major moves post announcement and the EUR/USD remained around the 1.0660 mark.
Trade of the Week
Time in: Wednesday 18 January 2017 at 16:00 GMT
Market : USD/CAD
Investment: $500 with 200:1 leverage
Time out: Wednesday 18 January 2017 at 21:00 GMT
P&L: $ 1,655
If you had bought USD/CAD with a $500 margin at the price of 1.30541 and closed the deal once after central bank Governor Poloz’ speech on Wednesday at 21:00 GMT which saw CAD drop 1.65%, you might have made $1,655. Note this example does not take into account spread.
https://www.theguardian.com/business/2017/jan/16/bank-of-england-uk-consumer-spending-mark-carney-brexit
https://www.theguardian.com/business/2017/jan/17/uk-inflation-hits-two-year-high
https://www.bls.gov/news.release/pdf/cpi.pdf
http://www.metronews.ca/news/canada/2017/01/18/bank-of-canada-s-interest-rate-announcement-and-forecast-come-amid-uncertainty.html
http://www.economiccalendar.com/2017/01/19/ecb-interest-rate-decision-central-bank-leaves-interest-rates-unchanged-refi-rate-remains-at-0-0/
http://www.marketpulse.com/20170119/usdcad-canadian-dollar-slides-as-boc-pessimistic-about-trump/
The post Friday 20-01-2017 Lookback appeared first on Forex.Info.
Source: Easy Forex Forex.Info
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