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. Here’s how the markets responded to this week’s events. Don’t forget that the NFP for the US is due out today at 12:30 GMT and Canada’s net change in employment is also due at the same time.
Event: US ISM Manufacturing PMI
Date: Monday 02 October 2017 at 14:00 GMT
Markets affected: EUR/USD, DOW/USD
Trending hashtags: #usd, #ism
The ISM Manufacturing index continued to impress in September by coming in at 60.8 and beating expectations of 58.0. August’s figure of 58.8 was already a six year high and its seems that nothing is going to stop the roll of the US industry. Concerns of impacts from hurricanes Harvey and Irma were unfounded as the manufacturing sector continues showing strong recovery.
Event: Reserve Bank of Australia Interest Rate Decision
Date: Tuesday 03 October 2017 at 03:30 GMT
Markets affected: AUD/USD, AUD/NZD
Trending hashtags: #aud, #interestrate
The RBA maintained the interest rate at 1.5% and put the Aussie dollar under pressure by commenting that a strong AUD would slow economic expansion. The AUD/USD consolidated just above 0.7800 during the trading session as negativity felt by the RBA’s comments was partly offset by new home sales raising by 9.1% in August. This was significantly better than the decline in July of 3.7%.
Event: ECB Non-Monetary Policy Meeting
Date: Wednesday 04 October 2017 at 07:00 GMT
Markets affected: EUR/USD, EUR/GBP
Trending hashtags: #eur, #ecb
Following the release of the ECB’s monetary policy meeting minutes the markets received further confirmation that the central bank will reduce QE for the Eurozone in 2018. The ECB’s stance was further supported by Mario Draghi’s speech later in the day. However, even the news that retail PMI growth surpassed expectations for September to 52.3 was not enough to support the struggling euro. After consolidating above 1.1750, the EUR/USD resumed declining on the back of political tensions in Spain. The vote for Catalan independence on Monday and the Spanish government suspending their parliament is likely to keep the euro under pressure going into next week.
Event: EIA Crude Oil Change
Date: Thursday 05 October 2017 at 14:30 GMT
Markets affected: EUR/USD, WTI/USD
Trending hashtags: #usd, #nfp
The price of the benchmark West Texas Intermediary crude rose following the statistics on the weekly inventories in the US. Crude oil inventories dropped by 6 million barrels while analysts were expecting a drop of just 0.5 million barrels. Traditional commodity currency, the CAD, however failed to improve on the news, mostly due to the increase in their trade deficit to 3.4 billion in August.
Trade of the Week
Time in: Thursday 05 October 2017 at 13:00 GMT
Market : WTI/USD
Investment: $500 with 200:1 leverage
Time out: Thursday 05 October 2017 at 17:00 GMT
If you had bought the WTI/USD with a $500 margin at the price of $49.97 and closed the deal after the EIA report on Thursday at 14:30 GMT which saw the Oil rise 2%, you might have more than tripled your investment with a tidy $2,021 profit. Note this example does not take into account spread.