Friday 14-07-2017 Lookback

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 expectations were met or missed and to examine a successful trade you could have made this week.

Event: UK Inflation Report

Date: Tuesday 11 July 2017 at 10:00 GMT

Markets affected: GBP /USD, EUR/GBP

Trending hashtags: #gbp, #ukinflation

The Bank of England’s deputy Governor, Broadbent, spoke on Tuesday and failed to give any confidence to the markets in relation to an interest rate hike to offset growing inflation in the economy. The Pound fell on the lack of support for a rate rise after Broadbent’s speech to $1.2846 against the USD and to €1.1231 against the euro.

Event: UK ILO Unemployment Rate

Date: Wednesday 12 July 2017 at 08:30 GMT

Markets affected: GBP /USD, EUR/GBP

Trending hashtags: # gbp, #ukjobs

The UK ILO Unemployment rate for the 3 months to May came in at 4.5%, just a fraction off the expected 4.6% figure seen in previous months. Unemployment remains at a 42 year low for Great Britain and the sterling reacted positively to the better than expected figure rising 0.29% against the US dollar to 1.2891. The labour market in the UK hasn’t been this healthy since 1975. On the negative side, average hourly earnings increased only 1.8% year-on-year, which is below the current inflation rate.


Event: BoC Interest Rate Decision

Date: Wednesday 12 July 2017 at 14:00 GMT

Markets affected: CAD/USD

Trending hashtags: #cad, #interestrate

The Bank of Canada took the decision on Wednesday to increase the interest rate from 0.5% to 0.75%. A move that didn’t take the markets by a big surprise but it did see the CAD increase against key trading partners. After 7 years of easy monetary policy the central bank has, like their North American neighbours, started to tighten the reins. The loonie increased by a full dollar to $79 on the news and with more increases hinted for the future, CAD bulls are sharpening their horns.

Event:Australia Consumer Confidence (July)

Date: Wednesday 12 July 2017 at 00:30 GMT

Markets affected: EUR/USD, EUR/GBP

Trending hashtags: #eur, #ecb

Consumer Confidence in Australia for July came in at 0.4% which was a vast improvement on June’s -1.8% reading. The Aussie dollar increased somewhat on the back of the news but as the overall index sits at 96.6, consumers are still not convinced that the economy is back on an even footing. Rising house prices and debt are keeping the interest rates at record lows and that’s unlikely to change this year. Exports are faring much better as commodity prices are on the up.

Trade of the Week

Time in: Wednesday 12 July 2017 at 12:00 GMT
Market : USD/CAD
Investment: $500 with 200:1 leverage
Time out: Wednesday 12 July 2017 at 18:00 GMT

P&L: $1,994

If you had sold USD/CAD with a $500 margin at the price of 1.29319 and closed the deal once after the BoC Interest Rate Decision on Wednesday at 14:00 GMT which saw the currency pair drop 1.99%, you might have made $1,994. Note this example does not take into account spread.

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