This week will bring a lot of fundamental news that will cause market fluctuations and create excellent trading opportunities for traders. We identified 3 main events of this week:
1. The Reserve Bank of Australia will release their Cash Rate and Rate Statement on Tuesday. The interest rate charged for the transfer of overnight transactions between financial companies, according to preliminary forecasts, will remain unchanged: 1.50%. Such a result is laid in market prices, therefore any surprises will lead to fluctuations in the national currency rate: the rate hike will help the Australian dollar to grow, and the reduction will help it to fall. The decision on the interest rate will indicate the views and concerns of the RBA. Continue reading →
Last week, trading was fairly dynamic, the dollar recovered and traded in the green zone after the bulls overcame the resistance. On the first day of the new week there will be 3 key data releases in the US, the EU and Canada.
In Canada, there are data of the trade sector, which tends to have a tremendous impact on the value of the national currency: the more the country’s exports, the higher the demand for the currency needed to pay for goods. Conversely, the more a country imports goods, the greater the supply of the national currency, it is necessary to pay for imports. Index of current accounts will reflect the change in the value of imports and exports, therefore, if it comes out higher than expected, the Canadian dollar will grow due to increased demand for the currency. If the report falls below expectations, the Canadian dollar will fall due to the increased supply of currency. Continue reading →
The majority of the total economic activity of the EU falls on the German economy. Consequently, traders closely monitor the macroeconomic indicators of Germany, which can be judged on the economic climate in the euro area. The European currency gained support amid a recession of recent political instability: Macron won the presidential election in France, which reassured market participants who feared the victory of Le Pen and the probable Frexit. Decisive policy is the key to the strength of the eurozone, but the near future of a single currency will be determined by the economic performance of the EU and its largest member countries. Today, Germany’s fundamental data will come out, which will give the euro a reason to grow or fall depending on the outcome of publications. Continue reading →