by Ntombi Malatsi | Nov 6, 2016 | ECONOMIC NEWS
Economic news to watch this week
Recap from the previous week: Our week kicked off with Bank of Japan (BOJ) deciding on their policy rate which held steady at -0.10% as well as Reserve Bank of Australia (RBA) left their cash rate unchanged at 1.50%. Canada GDP also held steady at 0.2%. New Zealand Employment change increased by 0.8% while unemployment rate decreased by 0.2% from expected 5.1% to 4.9%. We also had several speeches from different governors throughout the week with BOE Gov Mark Carney deciding to stay as a governor of Bank Of England (BOE) beyond 2018, that on its own shook the markets and had an impact on GBP. These are the news or reports that you won’t see on economic calendar sites but official central banks sites, you can check the Bank of England for the latest statements and reports on their official site HERE.
GBP was the best performing currency as it rose more than 1% against the U.S Dollar after British high court ruled out the request to start the process to leave EU saying that it cannot be done without the vote of parliament members. Apparently most parliament members were not supportive of the Brexit. The markets seemed more focused on the U.S elections on the 8th. Gold is also expected to continue to rally up as the uncertainty surrounding the greenback builds up and investors are moving their money to Gold which is considered as a safe heaven. UK Construction PMI rose by 0.5. Federal funds rate held steady at <0.50%. UK Services PMI rose to 54.5 from 52.5 expected. BOE left their official rates unchanged at 0.25%. Australia retail sales increased by 0.2%. Canada Employment change increased and their unemployment held steady at 7.0%. US Earnings increased by 0.1% . U.S created 161k jobs while unemployment rate held steady at 4.9%. The U.S is expected to create 250k jobs every month just to keep up with the population. The Federal reserve is also expected to hike their rates in December. My eyes are on Gold as we wait for the U.S elections. Please note that during bank holiday, a currency involved may either be extremely volatile or extremely sleepy. read more about the best days to trade Forex HERE. Below are the economic news to watch this week. If you wish to receive weekly economic updates, subscribe to this blog. Thank you for stopping by, happy trading.
by Ntombi Malatsi | Oct 30, 2016 | ECONOMIC NEWS
Economic news to watch ahead of NFP
by Ntombi Malatsi | Oct 23, 2016 | ECONOMIC NEWS
Recap from our previous week
Our week kicked off with New Zealand’s CPI increasing to 0.2% from 0.0% forecast. UK CPI also increased from 0.9% forecast to 1.0%. Canada manufacturing sales increased by 0.6% from 0.3% expected to 0.9% actual. U.S CPI held steady at 0.3% while the Core CPI dropped by 0.1% from 0.2% forecast to 0.1% actual. UK Average Earnings held steady at 2.3% while Claimant count dropped from 3.4K forecast to 0.7k actual, this meant that the number of people who were claiming for unemployment related insurances have actually decreased.
The U.S Building Permits rose to 1.23M from 1.17M forecast. Bank of Canada kept their rates at 0.50%. Australia Employment change dropped to -9.8K from 15.2K expected while the Unemployment dropped by 1% from 5.7% expected to 5.6% actual. UK Retail sales dropped to 0.0% from expected 0.3%. Another highlights from Thursday was the European Central Bank (ECB) press conference, you can watch the recording and listen to the ECB president Mario Draghi HERE. U.S Unemployment claims increased from expected 251K to 260K. We wrapped up our week with Canada CPI which held steady at 0.2% while the Core retail sales dropped from 0.4% to 0.0%. Below are the economic news to watch this week.
by Ntombi Malatsi | Oct 16, 2016 | ECONOMIC NEWS
The importance of Retail Sales and Core Retail Sales in Forex markets.
Retail sales
Retail sales are the change in total value of inflation adjusted sales at the retail level. Retail Sales are a gauge of consumer spending which accounts for the majority of overall spending. Retail sales usually correlates with the Non-Farm Payroll (NFP). When the number of people increases, the chances of getting a higher Retail and Core retail Sales becomes higher. Apparently big spenders are workers otherwise why would these two correlate? Retail Sales include in-store sales, catalogue and out-of store sales.
Core Retail Sales
Core retail sales exclude Automobile and gas sales. They are excluded due to their volatility. Core Retail Sales are also used to calculate GDP, developing Consumer Price Indexes and analyzing the current economic health of a country. Federal Reserve (Feds) also uses it to asses the consumer behavior. We had U.S Core Retail Sales on the 14th (last Friday). It increased by 0.1% from expected 0.4% to 0.5%.
Core Retail and Retail Sales that I follow
- U.K Retail and Core Retail Sales
- U.S Retail and Core Retail Sales
- Canada Retail and Core Retail Sales
by Ntombi Malatsi | Oct 16, 2016 | ECONOMIC NEWS
Economic news to watch this week.
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