4 News Reports You Can Trade This Week

So what exactly are these news reports? lets take alook…

1. Gross Domestic Product (GDP)

What is that?

You can think of GDP as an economic measure. It is the most comprehensive measure of economic activity, making it one of the most preferred measures of economic health. Technically, it can be defined as a measure of change in the total value of domestically produced goods and services.

When will it be issued?

Canada will release its June GDP report later today at 12:30 pm GMT. Analysts expect to see their economy print a net clean bill with a 0.2% growth forecast for the May reading of 0.1%.

Australia will take center stage on September 1 at 9:30 am GMT. After the disappointing outlook in June with Q1 GDP down 0.1% below consensus, the Australian economy is expected to be back in the second quarter. Forecasts rose by 0.9% from the previous 0.5%.

Finally, we have a Swiss GDP report on September 2 at 5:45 am GMT. The boy and the analysts raised the bar high! Second quarter forecast at 0.8%, double reading in the first quarter!

Impact on Canadian Dollar, Australian Dollar and Swiss Franc?

The better-than-expected figures are likely to be bullish for currencies as this will mean that economic activity is increasing and that means that their local economies are OK! However, if the figures come in worse than expected, we may only see that the currencies are trampled by bears. Yikes!

2. ECB Rate Decision

What is that?

Interest rate changes have a significant impact on exchange rates as they dictate the flow of funds. Investors and traders usually want their “biggest bang on their money” to make sure they put their money where they make the most profit.

When will it be issued?

Will be released at 11:45 am GMT on Thursday. The European Central Bank is expected to keep interest rates unchanged at 1.00%, so trading is likely to focus on what the bank says.

Influence on the euro?

The impact of the decision on the euro will depend to a large extent on the accompanying ECB statement. If the European Central Bank continues to highlight the weak labor market in the euro area, we expect a slight decline in the euro. However, the statement that confirms the rise in inflation in the future may lead to the strength of the euro.

3. Minutes of the meeting of the Federal Committee

What is that?

The minutes of the meeting give the public an insight into how the FOMC makes its decision on the interest rate. Details of what was said at the meeting, the economic factors that they looked at determining the rates, the actual decision itself. If the minutes differ significantly from the official announcement three weeks ago, we can see investors and traders make adjustments to their positions.

When will it be issued?

Will be released at 6:00 pm GMT on Tuesday.

Impact on the dollar?

With a quantitative easing on the table, we seem to see more cautious comments from Federal Reserve Ben Bernanke this time. As in the last minutes of July, we can see the dollar receives a serious blow!

4. Non-agricultural payrolls

What is that?

The non-farm payroll report reveals the change in the number of people employed during the previous month. As such, it is considered a measure of the state of work in the United States. Apart from that, it is a major indicator of consumer spending and overall economic activity because much depends on whether individuals are able to hold on to their jobs.

When will it be issued?

It is scheduled for 12:30 GMT on Friday.

Impact on the dollar?

As usual, many traders are all eyes and ears on the next NFP report, and they know how to determine the direction of the USD in the near term. If the actual report is much weaker than expected, this could confirm that the US economy is in big trouble. A weak job growth could give the Fed enough reason to carry out another round of stimulus measures, which could lead to the dollar selling again.

Are you ready for this volatile move this week? With versions that move in the market from time to time, you can better keep your hats and prepare yourself for a ton of twists. If you’re not ready to handle these fireworks, it’s easier to see all the actions from the sidebar. Keep in mind that couples can also start swinging to a few minutes before actual releases. Do not say I did not warn you!



Leave a Reply to lina Cancel reply

Your email address will not be published. Required fields are marked *