Your Weekly Fundamental View (Apr 17-21)

April 17, 2017 12:02


Need to know

The main focus of the trading week is on Australia, the UK, and the OPEC meetings. The RBA (Reserve Bank of Australia) is releasing its meeting minutes, whereas the BOE (Bank of England) Governor is expected to speak. Another important event could be during the weekend when the OPEC (organisation of petroleum exporting countries) will meet up to discuss current events. Also note that Monday financial markets could be quiet and show lower volatility due to bank holidays in many European countries and Australia.

Coming up

Bank holidays occur on Monday, 17 April.

Many European countries and Australia are taking a day off due to Easter time. The list of countries which are offering a national public holiday include major financial hubs such as the UK, Germany, France, Italy and Switzerland.

Why should you care? The Forex, CFD, and financial markets could be slower and quieter in their price movements and volatility due to the fact that major financial hubs are having a day off.

Chinese GDP figure and industrial production are released Monday, 17 April.

The Gross Domestic Product (GDP) measures the total economic activity of a country. The growth of the total GDP can be seen as a primary measurement or improvement of the economy's health.

Why should you care? China's GDP can influence the global economy and investor sentiment due to the fact that China is the second largest economy in the world. The previous yearly growth rate is 6.8%, and the forecasted figure is 6.8%.(*) The previous quarterly GDP is 1.7%, and forecast is 1.6%.(*) The previous industrial production figure is 6.3%, and the forecast is 6.3%.(*)

Australian Monetary policy meeting minutes are released on Tuesday, 18 April.

The meeting minutes provide more information about how the Australian board members view the current and future economic conditions. The detailed records of the recent meeting offer more understanding what influenced their decision to set interest rates as they are.

Why should you care? The interest rate development is a critical part of understanding the demand for any currency. Many factors influence such an interest rate decision. Understanding how the board members of a central bank view and analyse those factors is of importance to all traders and investors.

Bank of England (BOE) Governor Speaks on Thursday, 20 April.

The Governor of the BOE, Mark Carney, is expected to speak twice — at the Institute of International Finance Policy Summit and in a panel discussion at the Bank of France Event, both in Washington DC, US.

Why should you care? The president of a central bank always receives attention when he speaks because of his influence on nation's or currency bloc's monetary policy and interest rate decisions.

British retails sales figures are announced on Friday, 21 April.

The retail sales figure shows the change in the total value of inflation-adjusted sales.

Why should you care? Retail sales are an indication of consumer spending and are important part of the overall economic activity. The previous retail sales month on month is 1.4%, and the forecast is -0.2%.(*) The previous retail sales year on year is 3.7%, and the forecast is 3.6%.(*)

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Source: retails sales YoY from UK on Forex Calendar Admiral Markets.

Canadian CPI figures are announced on Friday, 21 April.

The consumer price index (CPI) indicates a change in the price of goods and services purchased by consumers.

Why should you care? Consumer prices are a critical part of inflation. Raising prices and inflation could eventually lead to an increase of the interest rate, which in turn makes a currency more interesting for investors. The previous inflation rate year on year is 2%.(*)

OPEC meetings take place on Saturday, 22 April.

The OPEC (organisation of petroleum exporting countries) nations represent around 40% of the world's oil supply. A formal statement is made after the meeting is concluded.

Why should you care? Shifts in their production can have significant impact on oil prices due to their large volume.

(*) Admiral Markets Calendar