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 whether expectations were met or missed and to examine a successful trade you could have made this week.
Event: Japan rate decision
Date: Tuesday 20 December 2016 at 03:00 GMT
Markets affected: USD/YEN
Trending hashtags: #yen, #boj, #interestrate
With a better economic outlook, the Bank of Japan held off on any changes to the interest rate. Analysts were not expecting any changes after the two day policy meeting, and none were forthcoming from the BOJ. Interest rates remained in negative territory at -0.1% for some bank reserves, 10-year government bonds yield at 0 target and they retained annual rises in holdings at 80 trillion yen. As well as painting a better economic picture, the BOJ commented on moderate recovery with exports and output up, thanks to a weaker yen to US dollar. Inflation is still below the 2% target but planned public works in 2017 are expected to bolster the economy and inflation in turn.
The yen fell slightly following the announcement in Asian trading. It dropped to 117.55 against the US dollar, 122.26 against the euro and 145.65 against the sterling.
Event: New Zealand GDP announcement
Date: Wednesday 21 December 2016 at 21:45 GMT
Markets affected: NZD/USD, AUD/NZD
Trending hashtags: #nzgdp, #nzd
New Zealand GDP outstripped analysts’ expectations of 0.8% and came in at a healthy 1.1% for the third quarter of 2016. Driven by household consumption, almost all sectors were up; making this the 24th consecutive quarter the economy has grown. The NZ dollar continued to trade lower against the US dollar after the GDP report. Following the Fed’s interest rate hike, the NZD has been trading at 0.6900, more than 4% down from the previous week.
Event: US Durable Goods Orders
Date: Thursday 22 December 2016 at 13:30 GMT
Markets affected: EUR/USD,
Trending hashtags: #durablegoods, #usd
The U.S. Census Bureau announced that new orders for manufactured durable goods in November decreased $11.0 billion or 4.6 percent to $228.2 billion. After 4 consecutive increases, this decrease followed October’s 4.8% increase. New orders rose 0.5% (ex-transportation) but dropped 6.6% (ex-defence). Transportation equipment drove the decrease falling 13.2% to $76.6 billion making that four successive monthly increases.
Event: US Housing Price Index (October)
Date: Thursday 22 December 2016 at 14:00 GMT
Markets affected: EUR/USD
Trending hashtags: #usd, #housingprices
The Housing Price Index released by the Federal Housing Finance Agency provides an estimated value of housing market conditions. It is an important indicator as the housing market is considered as a sensitive factor to the US economy. For the month of October it came in at 0.4%, lower than the previous month’s of 0.6%.
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