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 outlook starting this Monday 10 July. We’ll be looking at the week’s key economic events on the financial calendar covering Monday to Thursday. This week we see key figures coming out of the UK on inflation and unemployment. Brexit negotiations continue to put pressure on the pound which is in need of some welcome news. Canada releases its key interest rate which may bring volatility for the loonie – analysts are split as to whether we will see any shifts in policy. Mid-week we get consumer confidence data from the land of downunder.

 

Event: UK Inflation Report

Date: Tuesday 11 July 2017 at 10:00 GMT

Markets affected: GBP /USD, EUR/GBP

Trending hashtags: #gbp, #ukinflation

 

The inflation level in the UK surpassed expectations for May as it hit 2.9%, the highest reading for four years. Analysts had been expecting an increase but to only 2.7%. Core inflation, which doesn’t take into consideration oil and food as their prices are volatile, also increased 0.2% to 2.6%. Last month’s inflation release saw the sterling gain 0.37% against the USD hitting $1.2700 thanks to traders speculating that the rise in inflation may force the Bank of England into an interest rate increase.

 

Event: UK ILO Unemployment Rate

Date: Wednesday 12 July 2017 at 08:30 GMT

Markets affected: GBP /USD, EUR/GBP

Trending hashtags: # gbp, #ukjobs

 

Unemployment for the green isles hit 4.6% in April, and maintained the same level for March – already a multi-decade low. 109,000 new jobs were added for that month. For May, the expectation is for a modest increase to 4.7%.

Event: BoC Interest Rate Decision

Date: Wednesday 12 July 2017 at 14:00 GMT

Markets affected: CAD/USD

Trending hashtags: #cad, #interestrate

 

Speculation is high as to whether the world’s 11th largest economy will increase its interest rate that is currently on 0.5%. Canada is the faster growing nation of the G7’s for Q1 of this year and jobs have grown consistently for the last 6 months. However, as oil is a key export for the nation, it is correlated with Canada’s inflation and recently prices have been range bound in the mid-$40 a barrel. NAFTA talks with its biggest trade partner, the US, are coming up so the bank my just stay its hand for the present.

 

Event: Australia Consumer Confidence (July)

Date: Wednesday 12 July 2017 at 00:30 GMT

Markets affected: EUR/USD, EUR/GBP

Trending hashtags: #eur, #ecb

For the 3rd month in a row, Consumer Confidence in Australia fell in June to 96.0. The Reserve Bank of Australia had downgraded its 5 year outlook for the economy and that’s hit the confidence of consumers, and the Aussie dollar, hard.

 

 

https://www.fxstreet.com/economic-calendar

http://www.independent.co.uk/news/business/news/uk-inflation-latest-news-expectations-2-per-cent-may-2017-a7787151.html

http://www.tradingeconomics.com/united-kingdom/calendar

http://www.bnn.ca/bank-of-canada-interest-rate-decision-3-reasons-to-hike-3-reasons-to-hold-1.792401

http://www.tradingeconomics.com/australia/calendar

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