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: UK Consumer Price Index

Date: Tuesday 15 August 2017 at 08:30 GMT

Markets affected: GBP/USD, EUR/GBP

Trending hashtags: #gbp, #inflation

The sterling fell on the release of the lower than expected inflation figure from the UK. The Consumer Price Index maintained its previous reading of 2.6% for the month of July, 0.1% less than what analysts were expecting. While petrol prices fell, the costs of clothing, food and utilities increased. The retail price index on the other hand came in 0.1% higher than expectations at 3.6% but this was not enough to help the struggling pound. The CPI result is lowering expectations that the Bank of England may raise the interest rate any time soon.

 

Event: US Retail Sales

Date: Tuesday 15 August 2017 at 12:30 GMT

Markets affected: EUR/USD, USD/JPY

Trending hashtags: #usd

Retail sales in the US increased 0.6% for July, a significant 0.2% higher than what analysts were forecasting for the month. June’s figure was also upwardly revised to from a -0.2% to a positive 0.3% increase. The result for July was a seven-month high and is increasing the outlook for the third quarter of this year for the US.

 

Event: EU Gross Domestic Product

Date: Wednesday 16 August 2017 at 09:00 GMT

Markets affected: EUR/USD, EUR/GBP

Trending hashtags: #eur, #gdp

GDP for the Eurozone came in at a better than expected 2.2% growth for the second quarter of 2017. The Eurozone’s economy continues to demonstrate a strong recovery. The annualised reading came in 0.3% better than the previous quarter and gave a boost to European equity markets.

 

Event: FOMC Meeting Minutes

Date: Wednesday 16 August 2017 at 18:00 GMT

Markets affected: EUR/USD, USD/JPY

Trending hashtags: #usd, #fomc

The Federal Market Open Committee released the minutes from their July meeting and showed a divergence amongst members attitudes to raising the interest rate. The Fed voted to keep the interest rate in the 1% – 1.25% range as the economy has yet to reach the 2% inflation target set by the central bank. The USD fell on the release of the minutes against most of its major counterparts.

 

Event: Australian Unemployment Rate

Date: Thursday 17 August 2017 at 01:30 GMT

Markets affected: AUD/USD, AUD/NZD

Trending hashtags: #aud, #jobs

 

Employment in Australia grew by 27,900 in July and June’s figure was revised upwardly to 20,000 from its initial reading of 14,000. The jobs result was a little over expectations though full-time employment dropped by just over 20,000 to 62,000. So, the positive jobs result came from part-time job gains for July. The unemployment rate fell to 5.6% from the previous month’s reading of 5.7% painting a somewhat better employment picture. However, the wages price index was the slowest on record as it showed growth of only 1.9% annualised growth for the second quarter.

 

Event: EU Consumer Price Index

Date: Thursday 17 August 2017 at 09:00 GMT

Markets affected: EUR/USD, EUR/GBP

Trending hashtags: #eur, #cpi

 

The Consumer Price Index for the Eurozone came in at an expected 1.3% on Thursday, pretty much as the markets were expecting. Later in the day the European Central Bank released their July 20 meeting minutes that showed the central bank, similar to the Fed in the US, is worried about the inflation rate meeting expectations. The euro lost ground on the day and hit a three-week low.

Trade of the Week

Time in: Wednesday 16 August 2017 at 13:00 GMT
Market : XAU/USD
Investment: $500 with 200:1 leverage
Time out: Wednesday 17 August 2017 at 02:00 GMT

P&L: $1,546

If you had bought XAU/USD with a $500 margin at the price of 1,269.31 and closed the deal once after the FOMC Meeting Minutes on Wednesday at 18:00 GMT which saw the gold rise by 1.55%, you might have made $1,546. Note this example does not take into account spread.

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