Weekly Market Analysis (May 17 – May 21): Know How News Impacted Your Currency

May 17

Foreign Securities Purchases (Canada)

Pair Projection What is this news about?
USDCAD, EURCAD, CADJPY, NZDCAD, CADCHF, AUDCAD, GBPCAD Released monthly, about 50 days after the month ends; Although not much of impact can be expected from this. But, better be safe while trading CAD pairs. Demand for domestic securities and currency demand are directly linked because foreigners must buy the domestic currency to purchase the nation's securities;

Rightmove HPI m/m (UK)

Pair Projection What is this news about?
GBPUSD, GBPJPY, GBPCAD, GBPAUD, GBPNZD, GBPCHF, EURGBP, This is the UK's earliest report on housing inflation, but tends to produce a relatively mild impact because asking prices and selling prices are not always correlated; GBP can go either way depending on the actual outcome. It's a leading indicator of the housing industry's health because rising house prices attract investors and spur industry activity;

Eurogroup Meetings (Euro Zone)

Pair Projection What is this news about?
EURUSD, EURJPY, EURGBP, EURCAD, EURAUD, EURNZD, EURCHF Volatility in EUR pairs is expected, 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;

May 18

Monetary Policy Meeting Minutes (Australia)

Pair Projection What is this news about?
AUDCAD, AUDUSD, EURAUD, GBPAUD, AUDNZD, AUDJPY, AUDCHF Depending on the actual outcome AUDXXX pairs might get volatile. Then again, the level of volatility would depend on the outcome. It's a detailed record of the RBA Reserve Bank Board's most recent meeting, providing in-depth insights into the economic conditions that influenced their decision on where to set interest rates;

SNB Chairman Jordan Speaks (Switzerland)

Pair Projection What is this news about?
All CHFXXX AND XXXCHF PAIRS Volatility is sometimes experienced during his speeches as traders attempt to decipher interest rate clues; CHFXXX pairs might get 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;

Trade Balance (EURO ZONE)

Pair Projection What is this news about?
EURUSD, EURJPY, EURGBP, EURCAD, EURAUD, EURNZD, EURCHF Upward volatility is expected from EURXXX pairs. Specially EURUSD, be cautious while trading and look for entry opportunity. This is the seasonally adjusted data (as most FF numbers are), not to be confused with the non-seasonally adjusted number reported by some news agencies. Tends to have a muted impact because Germany and France, which account for about half of the Eurozone's economy, release earlier trade data. A positive Trade Balance indicates that more goods and services were exported than imported;

May 19

Monetary Policy Meeting Minutes (AUD)

Pair Projection What is this news about?
AUDCAD, AUDUSD, EURAUD, GBPAUD, AUDNZD, AUDJPY, AUDCHF Wait for the actual impact of the news on the country's economy. Forecast doesn't always work on this kind of situations. AUDXXX might get volatile. It's a detailed record of the RBA Reserve Bank Board's most recent meeting, providing in-depth insights into the economic conditions that influenced their decision on where to set interest rates;

BOE Gov Bailey Speaks (UK)

Pair Projection What is this news about?
GBPUSD, GBPJPY, GBPCAD, GBPAUD, GBPNZD, GBPCHF, EURGBP, Volatility is often experienced during his speeches as traders attempt to decipher interest rate clues; GBPXXX pairs might get unpredictable. Look for opportunities. 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;

SNB Chairman Jordan Speaks (Switzerland)

Pair Projection What is this news about?
All CHFXXX AND XXXCHF PAIRS Depending on the outcome of the news, CHFXXX and XXXCHF pairs can go down or up! 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;

May 20

Employment Change (Australia)

Pair Projection What is this news about?
AUDCAD, AUDUSD, EURAUD, GBPAUD, AUDNZD, AUDJPY, AUDCHF This is vital economic data released shortly after the month ends. AUDXXX pairs have high potential to stay volatile all day. Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity;

BOC Gov Macklem Speaks (Canada)

Pair Projection What is this news about?
USDCAD, EURCAD, CADJPY, NZDCAD, CADCHF, AUDCAD, GBPCAD Volatility is sometimes experienced during his speeches as traders attempt to decipher interest rate clues; CADXXX 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;

Unemployment Claims (USA)

Pair Projection What is this news about?
USD/CAD, EUR/USD, USD/CHF, GBP/USD, NZD/USD, AUD/USD, USD/JPY Depending on the actual outcome of the unemployed data, USDXXX pairs can move in any possible direction. 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 21

Retail Sales m/m (Australia)

Pair Projection What is this news about?
AUDCAD, AUDUSD, EURAUD, GBPAUD, AUDNZD, AUDJPY, AUDCHF This is the earliest look at vital consumer spending data; Depending on the actual outcome of the news AUDXXX pairs can move either way. It's the primary gauge of consumer spending, which accounts for the majority of overall economic activity;

German Flash Manufacturing PMI (Euro Zone

Pair Projection What is this news about?
EURUSD, EURJPY, EURGBP, EURCAD, EURAUD, EURNZD, EURCHF EURXXX pairs will get very volatile. Depending on the actual outcome, trend might get reversed. It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy;

Flash Manufacturing PMI (USD)

Pair Projection What is this news about?
USDCAD, EURCAD, CADJPY, NZDCAD, CADCHF, AUDCAD, GBPCAD Volatility in USDXXX pairs is anticipated. Depending on the outcome price may go bearish or bullish. It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy;

Leave a Reply

14 + 14 =