Senior Analyst

Passionate about the markets, the excitement, the story driving the markets at the time, the fundamentals and even the technicals.

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 Meeting Minutes

Date: Tuesday 16 May 2017 at 01:30 GMT

Markets affected: AUD/NZD, AUD/USD, AUD/GBP

Trending hashtags: #aud, #rba

The Reserve Bank of Australia confirmed its decision to keep interest rates at 1.5% for some time to come due to concerns for housing and labour data. The Aussie dollar steadied at $0.7412 against the US dollar after a small uptick. The Meeting Minutes showed the RBA’s continued concerns for record-high household debt followed by a slowing in wage growth. The threat with this scenario is that domestic spending is likely to take a hit.

Event: UK CPI

Date: Tuesday 16 May 2017 at 09:00 GMT

Markets affected: GBP /USD, EUR/GBP

Trending hashtags: #ukinflation, #cpi

UK inflation hit the highest level since September 2013. The consumer price index (CPI) came in at 2.7%, which is far above the central bank’s target rate of 2%. The Bank of England voiced their concerns last week that inflation would continue to exceed the desired target and is looking to reach almost 3% in 2017. The inflation figure pushed UK stocks higher with the FTSE 100 Index hit a record-high above 7,500.

Event: EU GDP for Q1 2017

Date: Tuesday 16 May 2017 at 09:00 GMT

Markets affected: EUR/USD, EUR/GBP

Trending hashtags: #eur, #gdp

Meanwhile, across the Chunnel, positive Eurozone data saw the euro hit new yearly highs against the US dollar rising almost 1% to the upper 1.0170 area. The seasonally adjusted GDP for the first quarter of the year increased 0.5% in both the euro area and the EU28 during Q1. Comparing this number to the first quarter of 2016, the seasonally adjusted GDP grew 1.7% for the euro area and 2.0% for the EU28. The only foul note was the Eurostat findings that GDP in Greece dropped 0.1% for Q1 and sending the nation back into recession after five years of slowly climbing out of it.

Event: ECB Non-monetary policy meeting

Date: Wednesday 17 May 2017 at 07:00 GMT

Markets affected: EUR/USD, EUR/GBP

Trending hashtags: #eur, #ecb

The ECB’s meeting showed inflation for the region had stabilised just below their target rate in April, which has some analysts forecasting a sooner than anticipated normalisation of monetary policy. The Eurozone’s consumer price index (CPI) increased to 1.9% for the 12 months through April, matching last April’s flash estimate. Core inflation increased to a four-year high of 1.2% – also matching last month’s preliminary estimate. The ECB’s loose monetary policy seems to be having the desired effect of stimulating growth and increasing inflation with the region’s overall economy showing good stability.

Trade of the Week

Time in: Tuesday 16 May 2017 at 06:00 GMT
Market : EUR/USD
Investment: $500 with 200:1 leverage
Time out: Tuesday 16 May 2017 at 13:00 GMT

P&L: $882

If you had bought the EUR/USD with a $500 margin at the price of 1.09911 and closed the deal after the release of the Eurozone GDP data on Tuesday at 09:00 GMT which saw the pound rise by 0.8%, you might have made $882. Note this example does not take into account spread.

 

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