Welcome to the 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: EU Consumer Price Index
Date: Monday 18 September 2017 at 08:30 GMT
Markets affected: EUR/GBP, EUR/USD
Trending hashtags: #eur, #inflation, #cpi
The Consumer Price Index for the Eurozone was published on Monday and showed that inflation for August was in line with the forecasted 1.5%. As the EU economy continues on its positive path and inflation target of up to 2%, the case of the ECB cutting its asset buying programme is looking more likely. The central bank President Mario Draghi has been hinting at this for some time now so much of the price action has already priced this in. However, when (rather than ‘if’) it does come through, we may still see volatility spike for the euro.
Event: RBA Meeting Minutes
Date: Tuesday 19 September 2017 at 01:30 GMT
Markets affected: AUD/USD, AUD/NZD
Trending hashtags: #aud, #employment
The Aussie dollar traded sideways on Tuesday, as traders mostly ignored the Reserve Bank of Australia’s meeting minutes. The RBA released minutes of its latest policy meeting, where the vote was to maintain interest rates at the current level.
Event: ECB Non-Monetary Policy Meeting
Date: Wednesday 20 September 2017 at 07:00 GMT
Markets affected: EUR/GBP, EUR/USD
Trending hashtags: #eur, #ecb
Following Monday’s inflation data, ECB President, Mario Draghi, has further support in pulling back on quantitative easing by reducing the asset purchasing programme from 80 billion to 60 billion euro. The Eurozone current account balance grew to 25.1 billion euro in July – above the expected 22.3 billion. Also, the German ZEW sentiment indicator grew to 17.0 for September and as Germany is the largest economy in the region it’s an important signal to the health of the overall area. The EUR/USD recovered lost positions during the trading session following these announcements. The German elections will be held this Sunday, though most are not expecting any surprises, which means, should a shock result happen, we may see volatility rise in the markets.
Event: FOMC Interest Rate Decision
Date: Wednesday 20 September 2017 at 18:00 GMT
Markets affected: USD/JPY, EUR/USD, GBP/USD
Trending hashtags: #usd, #interestrate
The Fed kept rates unchanged at 1.25% on Wednesday but policy makers are still expecting to put through one more rate hike before the end of the year. As expected, the central bank said it will start to reduce its $4.5 trillion balance sheet in October which means pulling back on the stimulus program that has been in place since the start of the financial crisis back in 2008. The US dollar rose against most of its counterparts on the back of the news with the guppy (USD/JPY) up 0.1% to 112.46. The cable (GBP/USD) was range-bound on Thursday after losing 100 pips during the previous session and the EUR/USD losing 100 pips as it fell below the 1.19 mark.
Event: BOJ Interest Rate Decision
Date: Thursday 21 September 2017 at 02:00 GMT
Markets affected: USD/JPY
Trending hashtags: #jpy, #interestrate
More central bank action came through on Thursday early morning with the Bank of Japan maintaining the interest rate at -0.1%. What did come as a surprise was dissent from one of the members of the monetary policy committee, Goushi Kataoka, whose vote was against retaining the current rate and purchasing program. The USD/JPY moved upwards during the Asian trade session but not significantly.
Trade of the Week
Time in: Wednesday 20 September 2017 at 18:00 GMT Market : EUR/USD Investment: $500 with 200:1 leverage Time out: Wednesday 20 September 2017 at 23:30 GMT
P&L: $1,154
If you had bought EUR/USD with a $500 margin at the price of 1.20113 and closed the deal once after the Fed interest rate decision on Wednesday at 18:00 GMT which saw the currency pair fall by 1.15%, you might have made $1,154. Note this example does not take into account spread.
Welcome to the 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.
The Consumer Price Index for the Eurozone was published on Monday and showed that inflation for August was in line with the forecasted 1.5%. As the EU economy continues on its positive path and inflation target of up to 2%, the case of the ECB cutting its asset buying programme is looking more likely. The central bank President Mario Draghi has been hinting at this for some time now so much of the price action has already priced this in. However, when (rather than ‘if’) it does come through, we may still see volatility spike for the euro.
The Aussie dollar traded sideways on Tuesday, as traders mostly ignored the Reserve Bank of Australia’s meeting minutes. The RBA released minutes of its latest policy meeting, where the vote was to maintain interest rates at the current level.
Following Monday’s inflation data, ECB President, Mario Draghi, has further support in pulling back on quantitative easing by reducing the asset purchasing programme from 80 billion to 60 billion euro. The Eurozone current account balance grew to 25.1 billion euro in July – above the expected 22.3 billion. Also, the German ZEW sentiment indicator grew to 17.0 for September and as Germany is the largest economy in the region it’s an important signal to the health of the overall area. The EUR/USD recovered lost positions during the trading session following these announcements. The German elections will be held this Sunday, though most are not expecting any surprises, which means, should a shock result happen, we may see volatility rise in the markets.
The Fed kept rates unchanged at 1.25% on Wednesday but policy makers are still expecting to put through one more rate hike before the end of the year. As expected, the central bank said it will start to reduce its $4.5 trillion balance sheet in October which means pulling back on the stimulus program that has been in place since the start of the financial crisis back in 2008. The US dollar rose against most of its counterparts on the back of the news with the guppy (USD/JPY) up 0.1% to 112.46. The cable (GBP/USD) was range-bound on Thursday after losing 100 pips during the previous session and the EUR/USD losing 100 pips as it fell below the 1.19 mark.
More central bank action came through on Thursday early morning with the Bank of Japan maintaining the interest rate at -0.1%. What did come as a surprise was dissent from one of the members of the monetary policy committee, Goushi Kataoka, whose vote was against retaining the current rate and purchasing program. The USD/JPY moved upwards during the Asian trade session but not significantly.
If you had bought EUR/USD with a $500 margin at the price of 1.20113 and closed the deal once after the Fed interest rate decision on Wednesday at 18:00 GMT which saw the currency pair fall by 1.15%, you might have made $1,154. Note this example does not take into account spread.
The post Friday 22-09-2017 Lookback appeared first on Forex.Info.
Source: Easy Forex Forex.Info
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