Weekly Market Analysis (July 12 – July 16): Know How News Impacted Your Currency

July 12

Core Machinery Orders m/m (Japan)

Pair Projection What is this news about?
USDJPY, EURJPY, CADJPY, AUDJPY, GBPJPY, CHFJPY, NZDJPY There might not be that much of a movement with JPY pairs. But, better be careful. Change in the total value of new private-sector purchase orders placed with manufacturers for machines, excluding ships and utilities

Eurogroup Meetings (Euro Zone)

Pair Projection What is this news about?
EURUSD, EURJPY, EURGBP, EURCAD, EURAUD, EURNZD, EURCHF All the EU countries gets engaged in meeting related to their respective countries. And, some key decisions are taken in this meeting thus the high volatility of EURXXX pairs. Eurogroup meetings are usually held in Brussels and attended by the Eurogroup President, Finance Ministers from euro area member states, the Commissioner for economic and monetary affairs, and the President of the European Central Bank. They discuss a range of financial issues, such as euro support mechanisms and government finances. The meetings are closed to the press but officials usually talk with reporters throughout the day, and a formal statement covering meeting objectives may be released after the meetings have concluded;

10-y Bond Auction (USA)

Pair Projection What is this news about?
USD/CAD, EUR/USD, USD/CHF, GBP/USD, NZD/USD, AUD/USD, USD/JPY Slight to no volatility is expected with USD/XXX pairs. Yields are set by bond market investors, and therefore they can be used to decipher investors' outlook on future interest rates. The bid-to-cover ratio represents bond market liquidity and demand, which can be used to gauge investor confidence;

July 13

RBA Rate Statement (Australia)

Pair Projection What is this news about?
GBPUSD, GBPJPY, GBPCAD, GBPAUD, GBPNZD, GBPCHF, EURGBP, This assessment report this time around can leave an impact on GBPXXX pairs. Lookout for the actual outcome of the news. It's an assessment of conditions in the financial system and potential risks to financial stability - the evidence on strains and imbalances can provide insight into the future of monetary policy;

Core CPI m/m (USA)

Pair Projection What is this news about?
USD/CAD, EUR/USD, USD/CHF, GBP/USD, NZD/USD, AUD/USD, USD/JPY Food and energy prices account for about a quarter of CPI, prices of USDXXX can get volatile. Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate;

30-y Bond Auction (USA)

Pair Projection What is this news about?
USD/CAD, EUR/USD, USD/CHF, GBP/USD, NZD/USD, AUD/USD, USD/JPY Prices of USDXXX can move either way depending on the actual outcome. Yields are set by bond market investors, and therefore they can be used to decipher investors' outlook on future interest rates. The bid-to-cover ratio represents bond market liquidity and demand, which can be used to gauge investor confidence;

July 14

RBNZ Rate Statement (New Zealand)

Pair Projection What is this news about?
All NZDXXX & XXXNZD PAIRS. Keep an eye for the actual outcome of the news, it may greatly impact on NZDXXX pairs. It's among the primary tools the RBNZ uses to communicate with investors about monetary policy. It contains the outcome of their decision on interest rates and commentary about the economic conditions that influenced their decision. Most importantly, it discusses the economic outlook and offers clues on the outcome of future decisions;

BOC Monetary Policy Report (Canada)

Pair Projection What is this news about?
USDCAD, EURCAD, CADJPY, NZDCAD, CADCHF, AUDCAD, GBPCAD 3 high impact news of BOC in row and it is clear that CAD will remain volatile. It provides valuable insight into the bank's view of economic conditions and inflation - the key factors that will shape the future of monetary policy and influence their interest rate decisions;

Fed Chair Powell Testifies (USA)

Pair Projection What is this news about?
USD/CAD, EUR/USD, USD/CHF, GBP/USD, NZD/USD, AUD/USD, USD/JPY It is expected that Powell may speak about USD interest rate. Lookout for what he says, it might temporarily impact USDXXX pairs. As head of the central bank, which controls short term interest rates, he has more influence over the nation's currency value than any other person. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy;

July 15

Unemployment Rate (Australia)

Pair Projection What is this news about?
AUDCAD, AUDUSD, EURAUD, GBPAUD, AUDNZD, AUDJPY, AUDCHF Upsurge is expected on AUD pairs, but it will totally depend on the actual outcome. Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions;

MPC Member Saunders Speaks (UK)

Pair Projection What is this news about?
GBPUSD, GBPJPY, GBPCAD, GBPAUD, GBPNZD, GBPCHF, EURGBP, It is still vague of what kind of impact it can leave on GBP pairs but lookout on GBP pairs around this time. BOE MPC members vote on where to set the nation's key interest rates and their public engagements are often used to drop subtle clues regarding future monetary policy;

Fed Chair Powell Testifies (USA)

Pair Projection What is this news about?
USD/CAD, EUR/USD, USD/CHF, GBP/USD, NZD/USD, AUD/USD, USD/JPY USD can get volatile prior to the Q&A session of the fed. Watch out. As head of the central bank, which controls short term interest rates, he has more influence over the nation's currency value than any other person. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy;

July 16

CPI q/q (New Zealand)

Pair Projection What is this news about?
All NZDXXX & XXXNZD PAIRS. NZDXXX pairs have a decent chance of going on a downwards direction. But, it will solely depend on the actual outcome. Keep an eye on this news. Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate;

BOJ Outlook Report (Japan)

Pair Projection What is this news about?
USDJPY, EURJPY, CADJPY, AUDJPY, GBPJPY, CHFJPY, NZDJPY The source doesn't have an exact time so be careful on the JPY charts. It provides valuable insight into the bank's view of economic conditions and inflation - the key factors that will shape the future of monetary policy;

Core Retail Sales m/m (USA)

Pair Projection What is this news about?
USD/CAD, EUR/USD, USD/CHF, GBP/USD, NZD/USD, AUD/USD, USD/JPY The forecast overall looks great and if the actual result is greater than forecast, we are going to see bullish movements on USD charts. Automobile sales account for about 20% of Retail Sales, but they tend to be very volatile and distort the underlying trend. The Core data is therefore thought to be a better gauge of spending trends;

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