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. Later today we have Canada’s CPI figures due at 12.30 GMT and the Fed’s Janet Yellen will be speaking at 23:15 GMT.

 

Event: UK Consumer Price Index

Date: Tuesday 17 October 2017 at 08:30 GMT

Markets affected: GBP/USD, EUR/GBP

Trending hashtags: #gbp, #cpi, #inflation

 

The sterling bulls were pleased with Monday’s consumer inflation data which came in at 3.0% for September. The CPI rose 0.1% on last month’s reading and increased the possibility of the Bank of England looking to raise interest rates. BOE Governor, Mark Carney, failed to comment on any changes to the central bank’s monetary policy in his speech at parliament during the day.

 

Event: EU Consumer Price Index (September)

Date: Tuesday 17 October 2017 at 09:00 GMT

Markets affected: EUR/USD, EUR/GBP

Trending hashtags: #eur, #cpi, #inflation

 

Inflation in the Eurozone for September saw a 0.4% change from the previous month as was expected and Core CPI hit 0.4% on a monthly basis. On an annualised basis, consumer prices increased 1.5%, with Core CPI for the year coming in a little above the forecast at 1.3%. The price of the euro fell during the session also due to the disappointing release from ZEW Economic sentiment index which fell to 26.7 against the 34.2 forecast and the previous month’s 31.7.

 

Event: US Industrial Production (September)

Date: Tuesday 17 October 2017 at 13:15 GMT

Markets affected: EUR/USD, USD/JPY

Trending hashtags: #usd, #industry

 

The EUR/USD remained under pressure on Tuesday with a better than expected result for Industrial Production in the US which came in at 0.3% for September. According to the Federal Reserve, the slowdown in activity due to hurricanes Harvey and Irma has been compensated for as rebuilding has begun.

 

Event: EU Extraordinary Economic Summit

Date: Wednesday 18 October 2017 at 07:00 GMT

Markets affected: EUR/USD, EUR/GBP

Trending hashtags: #eur, #ecb

 

The euro slipped back on Wednesday following the Eurozone’s economic summit where ECB President, Mario Draghi, commented that the central bank’s monetary policy shouldn’t be holding back member countries from carrying out reforms. There was no mention of the ECB’s bond buying programme which is currently at €60 billion a month nor on the interest rate that is still sitting on a low 0%.

 

Event: US Housing Data (September)

Date: Wednesday 18 October 2017 at 12:30 GMT

Markets affected: EUR/USD, USD/JPY

Trending hashtags: #usd, #housing

 

The euro got a respite on Wednesday and corrected upwards following housing data releases from the US which failed to meet expectations. Housing starts in September fell to 1.13 million against the 1.18 million forecasted and building permits for the same month dropped to 1.22 million against the expected 1.25 million.

 

Event: Australia Employment Data (September)

Date: Thursday 19 October 2017 at 00:30 GMT

Markets affected: AUD/USD, AUD/NZD

Trending hashtags: #aud, #jobs

 

Australia saw 19,800 new jobs added in September, not coming anywhere near August’s spectacular 53,000 new jobs, but still beating expectations of 15,000. The unemployment rate however did drop to 5.5% against the previous months (and expected figure of) 5.6% and reached the lowest it’s been in four years. The jobs market in Australia has grown for 12 months in a row now, the longest continuous growth it’s seen since 1994.

 

Event: China Gross Domestic Product (Q3)

Date: Thursday 19 October 2017 at 02:00 GMT

Markets affected: AUD/USD, CNH/USD

Trending hashtags: #cnh, #gdp

 

Gross Domestic Product for China in the third quarter of this year grew 6.8% on an annualised basis according to the national statistics bureau. The second quarter had surpassed expectations by coming in at 6.9% while this quarter’s results met analysts’ expectations bang on. On a quarterly basis, GDP has been growing steadily at 1.7% for the last 2 quarters as the markets had been expecting. Retail sales in China grew to 10.3% year on year and industrial production surpassed expectations with 6.6% growth according to official data.

 

Trade of the Week

Time in: Date: Wednesday 18 October 2017 at 23:55 GMT
Market : AUD/USD
Investment: $500 with 200:1 leverage
Time out: Thursday 19 October 2017 at 01:35 GMT

P&L: $331

 

If you had bought AUD/USD with a $500 margin at the price of 0.7846 and closed the deal after Australia’s Employment Data on Thursday at 00:30 GMT which saw the currency pair gain by 0.3%, you might have made $331. Note this example does not take into account spread.

 

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