Weekly Market Analysis (May 04 – May 07): Know How News Impacted Your Currency

May 04

Fed Chair Powell Speaks (USA)

Pair Projection What is this news about?
USD/CAD, EUR/USD, USD/CHF, GBP/USD, NZD/USD, AUD/USD, USD/JPY Volatility is often experienced during his speeches as traders attempt to decipher interest rate clues; USD Pairs are anticipated to be volatile. 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;

RBA Rate Statement (Australia)

Pair Projection What is this news about?
AUDCAD, AUDUSD, EURAUD, GBPAUD, AUDNZD, AUDJPY, AUDCHF Until Dec 2007 the statement was only issued when the cash rate was changed; High volatility in AUD pairs has been predicted by our analysts. It's among the primary tools the RBA Reserve Bank Board 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;

Cash Rate (Australia)

Pair Projection What is this news about?
AUDCAD, AUDUSD, EURAUD, GBPAUD, AUDNZD, AUDJPY, AUDCHF The rate decision is usually priced into the market, so it tends to be overshadowed by the RBA Rate Statement, which is focused on the future; Strong AUD pair volatility indication. Short term interest rates are the paramount factor in currency valuation - traders look at most other indicators merely to predict how rates will change in the future;

May 05

Unemployment Rate (New Zealand)

Pair Projection What is this news about?
All NZDXXX & XXXNZD PAIRS. percentage of total work force that is unemployed and actively seeking employment during the previous quarter; NZDXXX pairs should be volatile all day. 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;

EU Economic Forecasts (Euro Zone)

Pair Projection What is this news about?
EURUSD, EURJPY, EURGBP, EURCAD, EURAUD, EURNZD, EURCHF This report includes economic forecasts for EU member states over the next 2 years, and covers about 180 variables. EUR pairs will also be very volatile. The forecasts serve as the European Commission's basis for evaluating economic performance and trends of EU member states in regard to potential austerity measures and other forced spending cuts;

ADP Non-Farm Employment Change (USD)

Pair Projection What is this news about?
USD/CAD, EUR/USD, USD/CHF, GBP/USD, NZD/USD, AUD/USD, USD/JPY This data provides an early look at employment growth, usually 2 days ahead of the government-released employment data that it's designed to mimic. USD might drop or be bullish depending on the outcome. Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity;

May 06

Prelim ANZ Business Confidence (New Zealand)

Pair Projection What is this news about?
All NZDXXX & XXXNZD PAIRS. Above 0.0 indicates optimism, below indicates pessimism. There are 2 versions of this report released about 3 weeks apart – Preliminary and Final. NZD pairs might go on a bearish rally. It's a leading indicator of economic health - businesses react quickly to market conditions, and changes in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment;

BOE Monetary Policy Report (UK)

Pair Projection What is this news about?
GBPUSD, GBPJPY, GBPCAD, GBPAUD, GBPNZD, GBPCHF, EURGBP, GMP is going to be very volatile all day because many high impact news will appear throughout the day. 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;

Unemployment Claims (USA)

Pair Projection What is this news about?
USD/CAD, EUR/USD, USD/CHF, GBP/USD, NZD/USD, AUD/USD, USD/JPY This is the nation's earliest economic data. The market impact fluctuates from week to week, high volatility is expected from the USD pairs. 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. Unemployment is also a major consideration for those steering the country's monetary policy;

May 07

RBA Monetary Policy Statement (Australia)

Pair Projection What is this news about?
AUDCAD, AUDUSD, EURAUD, GBPAUD, AUDNZD, AUDJPY, AUDCHF High volatility is expected from AUDXXX pairs. Traders should be careful and look opportunity taking market confirmation in account. 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;

EU Economic Forecasts (Euro Zone)

Pair Projection What is this news about?
EURUSD, EURJPY, EURGBP, EURCAD, EURAUD, EURNZD, EURCHF This report includes economic forecasts for EU member states over the next 2 years, and covers about 180 variables. Uprising volatility is anticipated from EURXXX pairs. The forecasts serve as the European Commission's basis for evaluating economic performance and trends of EU member states in regard to potential austerity measures and other forced spending cuts;

Non-Farm Employment Change (USD)

Pair Projection What is this news about?
USD/CAD, EUR/USD, USD/CHF, GBP/USD, NZD/USD, AUD/USD, USD/JPY This is vital economic data released shortly after the month ends. The combination of importance and earliness makes for hefty market impacts; USDXXX pairs should be very volatile as per the outcome of the news. Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity;

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