Source: Forex News
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 were expectations met or missed and to examine a successful trade you could have made this week.
Event: Australian Interest Rate Decision
Date: Tuesday 07 February 2017 at 03:30 GMT
Markets affected: AUD/USD, EUR/AUD
Trending hashtags: #aussie, #rba
The Reserve Bank of Australia retained the interest rate at 1.5% even while noting improved global economic conditions and with both consumer and business confidence up. It’s expecting good growth in the major economies and China, Australia’s largest trade partner, showed a strong second half of 2016. The impact of an improved global economy on Australia is due to higher commodity prices. The bank is expecting a 3% rise of GDP over the next two years and for consumption to also pick up.
Event: EIA Crude Oil Stocks Change
Date: Wednesday 08 February 2017 at 15:30 GMT
Markets affected: OIL/USD
Trending hashtags: #crudeoil , #wti, #brent
For the week ending 3 February, U.S. crude oil refinery inputs averaged 15.9 million barrels per day – 54,000 barrels less than the previous week. Imports were up by 1.1 million barrels per day to reach 9.4 million barrels, which was above recent week’s averages. It was also significantly above the same period last year. WTI oil price rose $0.63 from the previous week to $53.81 per barrel – again much higher than this time a year ago, almost $23 a barrel higher.
Event: RBNZ Interest Rate Decision
Date: Wednesday 08 February 2017 at 20:00 GMT
Markets affected: NZD/USD, NZD/JPY
Trending hashtags: #nzd, #kiwi, #rbnz
The Reserve Bank of New Zealand kept the Official Cash Rate at 1.75% after slashing it 0.25% at its last meeting. The Bank noted that financial conditions had improved with long term interest rates lifting. Even with an improving global economy and rise in commodity prices, the bank will continue with an accommodative monetary policy due to uncertainties in global outlook. The NZ dollar rose on the announcement, not necessarily a good thing for balanced growth. Inflation is on target pointing towards a strong local economy.
Event: U.S. Initial Jobless Claims
Date: Thursday 09 February 2017 at 13:30 GMT
Markets affected: EUR/USD
Trending hashtags: #usd, #jobless
The US jobless claims figure took analysts by surprise as it fell to a 3 month low. Those applying for unemployment benefits fell by 12,000 to 234,000 according to the Labor department. The results point to a shortage of skilled workers, with employers holding onto workers and looking to add more to fill demand. The figure took many analysts by surprise who were expecting the claims for the week ended 3 February to be 250,000. This is another signifier to a healthy labor environment for the US.
Trade of the Week
Time in: Wednesday 08 February 2017 at 15:00 GMT
Market : OIL/USD
Investment: $500 with 200:1 leverage
Time out: Wednesday 08 February 2017 at 16:00 GMT
If you had bought the OIL/USD with a $500 margin at the price of 51.49 and closed the deal once after the EIA Crude Oil Stocks Change report which saw the price increase by 1.88%, you might have made $1,883. Note this example does not take into account spread.