James Trescothick

With more than 20 years of experience in financial service industry, James is our Senior Global Strategist and the co-producer and presenter of easyMarkets educational videos. When he is not working on educational programs or preparing webinars, you can find him with the easyMarkets team giving seminars around the world.

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: RBA Interest Rate Decision

Date: Tuesday 05 September 2017 at 04:30 GMT

Markets affected: AUD/USD, AUD/NZD

Trending hashtags: #aud, #interestrate

 

The Reserve Bank of Australia (RBA) maintained the cash rate at 1.5% this month as it has since August 2016. The aussie dollar did get a boost on the day from the Caixin Services PMI out of China which surpassed the expected 51.8 by coming in at 52.7 for August. The RBA gave further support to the AUD through positive comments on GDP growth and for the jobs market in Australia.

 

Event: Swiss GDP (Q2)

Date: Tuesday 05 September 2017 at 05:45 GMT

Markets affected: EUR/CHF, CHF/USD

Trending hashtags: #chf, #gdp

 

The swissy came under pressure on Tuesday with slower than expected Gross Domestic Product figures. Switzerland’s economy expanded by only 0.3% for the second quarter of this year and disappointed analysts that were expecting 0.5% growth. The USD/CHF is being buoyed by geopolitical pressures due to its safe haven status and the missile launches in North Korea.

 

Event: Australia Gross Domestic Product (Q2)

Date: Wednesday 06 September 2017 at 01:30 GMT

Markets affected: AUD/USD, AUD/NZD

Trending hashtags: #aud, #gdp

 

The Australian economy grew 0.8% in the second quarter according to the GDP release on Wednesday. The consensus amongst analysts was for this level of expansion which was almost three times the growth of Q1’s dismal 0.3% gain. The aussie dollar held steady following the release but drifted lower to 0.7986 at one point during the session.

 

Event: BoC Interest Rate Decision

Date: Wednesday 06 September 2017 at 15:00 GMT

Markets affected: CAD/USD

Trending hashtags: #cad, #interest rate

 

The Bank of Canada took markets by surprise by raising the interest rate a quarter of a percent to 1.0%. This makes it the second increase for the year when they raised the rate in July which was the first hike in 7 years. The CAD hit two year highs during the day and remained a popular currency to watch for the week.

 

Event: Eurozone GDP (Q2)

Date: Thursday 07 September 2017 at 09:00 GMT

Markets affected: EUR/USD, EUR/GBP

Trending hashtags: #eur, #gdp

 

The Eurozone’s Gross Domestic Product showed the common area economy to have grown by 0.6% for the second quarter. This was somewhat better than expectations and the Q1 growth of 0.5%. On an annualised basis, GDP grew 2.3% which was 0.1% better than the preliminary estimate and 0.2% better than growth in the first quarter. Overall growth was due to both household spending, which grew 0.5% from the previous quarter and Government spending which grew 0.3% from the first quarter by coming in at 0.5%.

 

Event: ECB Interest Rate Decision

Date: Thursday 07 September 2017 at 11:45 GMT

Markets affected: EUR/USD, EUR/GBP

Trending hashtags: #eur, #interest rate

 

The European Central Bank kept the interest rate at its current low 0% as expected earlier on Thursday. Later in the morning, following ECB President Mario Draghi’s speech the euro climbed over the $1.20 mark as he announced planned reductions to the Quantitative Easing scheme.  Draghi commented that the central bank’s outlook for the Eurozone’s economy continued to be positive across all member nations but also added that the region still required monetary stimulus as he tried to talk down the euro.

Trade of the Week

Time in: Thursday 07 September 2017 at 12:34 GMT
Market : EUR/USD
Investment: $500 with 200:1 leverage
Time out: Thursday 07 September 2017 at 12:50 GMT

P&L: $907

If you had bought the EUR/USD with a $500 margin at the price of 1.19327 and closed the deal one day after the ECB Interest Rate Decision on Thursday which saw the currency pair rise 0.9% in less than twenty minutes, you might have made $907. Note this example does not take into account spread.

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