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 20 June 2017 at 01:30 GMT
Markets affected: AUD/USD
Trending hashtags: #aud, #rba
There was little impact on the Aussie following the release of the minutes from the Reserve Bank of Australia. The minutes showed very little change from previous comments where officials expressed moderate optimism on the overall health of the Australian economy. With interest rates at record lows at 1.5% for almost a year, there is no sign of any changes likely to take place over the next few months.
Event: ECB Policy Meeting
Date: Wednesday 21 June 2017 at 07:0 GMT
Markets affected: EUR/USD, EUR/GBP
Trending hashtags: #eur, #ecb
The European Central Bank’s policy meeting gave no surprises to the markets as the common economic community continued their loosened monetary policy. We saw modest support for the price of the euro coming from better than expected data on June’s consumer confidence for the Eurozone. The inflation figures came in at -1, compared to the expected figure of -3.
Event: RBNZ Interest Rate Decision
Date: Wednesday 21 June 2017 at 21:00 GMT
Markets affected: NZD/USD, AUD/NZD
Trending hashtags: #nzd, #rbnz
The New Zealand dollar gained positions on Wednesday after the RBNZ confirmed positive forecasts on economic growth. The key interest rate was left unchanged at the 1.75% level. Confidence from the RBNZ in the future of the national economy cheered the kiwi bulls. The rebound in commodities gave further support to the NZD/USD.
Event: US Fed Initial Jobless Claims
Date: Thursday 22 June 2017 at 12:30 GMT
Markets affected: EUR/USD, GBP/USD
Trending hashtags: #usd, #jobs
Last week’s jobless claims in the US saw 241,000 applying for the unemployment benefit. The figure went slightly above expectations of 240,000 and the previous week’s figure was also revised up 1,000 to 238,000. Continuing jobless claims now sits at 1.944 million, outstripping the expected 1.928 million. This and other weak growth data may forestall the Fed’s hand for another interest rate hike this year.
Trade of the Week
Time in: Wednesday 21 June 2017 at 21:00 GMT
Market : NZD/USD
Investment: $500 with 200:1 leverage
Time out: Wednesday 21 June 2017 at 22:00 GMT
If you had bought the NZD/USD with a $500 margin at the price of 0.71963 and closed the deal after the RBNZ interest rate decision on Wednesday which saw the NZD gain 1.1%, you might have more than doubled your investment with a tidy $1,156 profit. Note this example does not take into account spread.