Last week the EUR/USD pair gave several very good trading opportunities. First the pair increased on Monday on speculation over the German and EU CPI data. On Tuesday we saw a rapid drop as the German data disappointed, however the EU CPI came just slightly below expectation and pulled the pair again up on Wednesday. Friday’s Non-farm payrolls came out and showed very strong result – the highest since 2010. The pair immediately dropped but by the end of the day the price were back on 1.3870. The reason why the market didn’t except the price might be due to the fact that even such a good result is not going to change the Fed policy. This week we should pay attention mainly to Fed Chairwoman Janet Yellen testimony on Wednesday and the European Minimum Bid Rate followed by press conference. Investors will look for any hints of ECB future steps. That might put a pressure in the pair and push it slightly down.
USD/JPY
The USD/JPY pair started last week on the 102.10 level and moved between its support and resistance. On Friday we saw the pair as high as 103.00 after the U.S. Non-farm payrolls came out better-than-expected. However, as the U.S. dollar dropped the pair finished back on 102.10. This week the pair started with bearish movement. Japanese Yen strengthening as the China’s manufacturing PMI came below expectation. What more Bank of Japan Governor Haruhiko Kuroda supported by his hawkish speech that the BoJ will not add stimulus as it is widely expected. This week should more quiet as the Japanese market remains close on Monday and Tuesday. We should pay attention to Japanese Monetary policy meeting minutes on Tuesday night and Janet Yellen testimony on Wednesday.
GOLD
Gold decreased last week from $1,306/ounce to Friday’s lows at $1,274/ounce. However, political situation in Ukraine spurred the demand for safe-haven asset and the pair started to climb again. The price is currently back on the $1,306/ounce. This fluctuation in price of gold we saw in previous weeks and we know that as the tension calms down the price falls. Therefore we suggest to wait for a good selling opportunities. This week except of the situation in Ukraine we should watch the Fed testimony on Wednesday.
May 5, 2014 – Weekly News
WEEKLY REPORT 05/04-09/05
EUR/USD
Last week the EUR/USD pair gave several very good trading opportunities. First the pair increased on Monday on speculation over the German and EU CPI data. On Tuesday we saw a rapid drop as the German data disappointed, however the EU CPI came just slightly below expectation and pulled the pair again up on Wednesday. Friday’s Non-farm payrolls came out and showed very strong result – the highest since 2010. The pair immediately dropped but by the end of the day the price were back on 1.3870. The reason why the market didn’t except the price might be due to the fact that even such a good result is not going to change the Fed policy. This week we should pay attention mainly to Fed Chairwoman Janet Yellen testimony on Wednesday and the European Minimum Bid Rate followed by press conference. Investors will look for any hints of ECB future steps. That might put a pressure in the pair and push it slightly down.
USD/JPY
The USD/JPY pair started last week on the 102.10 level and moved between its support and resistance. On Friday we saw the pair as high as 103.00 after the U.S. Non-farm payrolls came out better-than-expected. However, as the U.S. dollar dropped the pair finished back on 102.10. This week the pair started with bearish movement. Japanese Yen strengthening as the China’s manufacturing PMI came below expectation. What more Bank of Japan Governor Haruhiko Kuroda supported by his hawkish speech that the BoJ will not add stimulus as it is widely expected. This week should more quiet as the Japanese market remains close on Monday and Tuesday. We should pay attention to Japanese Monetary policy meeting minutes on Tuesday night and Janet Yellen testimony on Wednesday.
GOLD
Gold decreased last week from $1,306/ounce to Friday’s lows at $1,274/ounce. However, political situation in Ukraine spurred the demand for safe-haven asset and the pair started to climb again. The price is currently back on the $1,306/ounce. This fluctuation in price of gold we saw in previous weeks and we know that as the tension calms down the price falls. Therefore we suggest to wait for a good selling opportunities. This week except of the situation in Ukraine we should watch the Fed testimony on Wednesday.
Economics events (GMT time):
5/5/2014
All Day
JPY
Bank Holiday
1:30am
AUD
Building Approvals m/m
1:30am
AUD
ANZ Job Advertisements m/m
1:45am
CNY
HSBC Final Manufacturing PMI
All Day
GBP
Bank Holiday
9:00am
EUR
EU Economic Forecasts
All Day
EUR
Eurogroup Meetings
2:00pm
USD
ISM Non-Manufacturing PMI
6/5/2014
All Day
JPY
Bank Holiday
1:30am
AUD
Trade Balance
4:30am
AUD
Cash Rate
4:30am
AUD
RBA Rate Statement
8:00am
EUR
Final Services PMI
8:30am
GBP
Services PMI
9:00am
EUR
Retail Sales m/m
All Day
EUR
ECOFIN Meetings
12:30pm
CAD
Trade Balance
12:30pm
USD
Trade Balance
2:00pm
CAD
Ivey PMI
9:30pm
USD
FOMC Member Stein Speaks
10:45pm
NZD
Employment Change q/q
10:45pm
NZD
Unemployment Rate
10:45pm
NZD
Labor Cost Index q/q
11:01pm
GBP
BRC Shop Price Index y/y
11:30pm
AUD
AIG Construction Index
11:50pm
JPY
Monetary Policy Meeting Minutes
7/5/2014
1:30am
AUD
Retail Sales m/m
6:00am
EUR
German Factory Orders m/m
7:00am
CHF
Foreign Currency Reserves
12:30pm
CAD
Building Permits m/m
12:30pm
USD
Prelim Nonfarm Productivity q/q
12:30pm
USD
Prelim Unit Labor Costs q/q
2:00pm
USD
Fed Chair Yellen Testifies
2:30pm
USD
Crude Oil Inventories
8/5/2014
1:30am
AUD
Employment Change
1:30am
AUD
Unemployment Rate
Tentative
CNY
Trade Balance
6:00am
EUR
German Industrial Production m/m
7:15am
CHF
CPI m/m
11:00am
GBP
Asset Purchase Facility
11:00am
GBP
Official Bank Rate
Tentative
GBP
MPC Rate Statement
11:45am
EUR
Minimum Bid Rate
12:15pm
CAD
Housing Starts
12:30pm
EUR
ECB Press Conference
12:30pm
USD
Unemployment Claims
1:30pm
USD
FOMC Member Tarullo Speaks
2:30pm
USD
Natural Gas Storage
9/5/2014
1:30am
AUD
RBA Monetary Policy Statement
1:30am
CNY
CPI y/y
1:30am
CNY
PPI y/y
6:00am
EUR
German Trade Balance
8:30am
GBP
Manufacturing Production m/m
8:30am
GBP
Trade Balance
12:30pm
CAD
Employment Change
12:30pm
CAD
Unemployment Rate
2:00pm
GBP
NIESR GDP Estimate
2:00pm
USD
JOLTS Job Openings
10:00pm
USD
FOMC Member Kocherlakota Speaks
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