Here’s your fresh weekly outlook from Trade360, providing the insights of CrowdTrading ahead of interest rate decisions from various regions this week. Your CrowdTrading mission control. It gives you direct access to the world’s hottest approach to identifying and profiting from emerging market trends.
Despite recent disturbing events in Germany, the EUR/USD finished Friday up 51 pips, closing at a rate of $1.0916. Be ready for the crucial German ZEW Economic Sentiment in Europe report, released on Tuesday at 10.00 GMT
This well-regarded survey of investors analyses predictions for the next six months. Despite, Barclays view of the ECB to talk down EUR on Thursday, the CrowdTrading insights provides an optimistic prognosis which can boost the Euro. Last month, a slight improvement on the forecast generated 34-pip movement, earning a profit of $125 on a $100 EUR/USD investment. But Friday was less encouraging for the AUD/USD pair, which took a 121 pip hit, ending the week at $0.6864. Similarly, the GBP/USD pair suffered a 155 pip drop, to close the week at $1.4258.
The UK may be shielded from the brunt of the refugee crisis, but immigration continues to rise. Will this have an effect on prices. UK CPI (y/y) is set to be revealed on Tuesday at 09.30 GMT. Britain’s most important inflation indicator is always closely watched on account of its significance regarding the interest rate debate.
Make sure to follow the UK Average Earnings release on Wednesday at 09.30 GMT. Higher wages increase business costs, which are then passed on to consumers. Last month, a sub-expectation number initiated a 55-pip movement on the GBP/USD, delivering a solid profit of $150 from a clever $100 investment.
The week’s most important event, however, is the Minimum Bid Rate in Europe, announced on Thursday at 12.45 GMT.
Short-term interest rates in the troubled EU could be central to reassuring investors of the underlying strength of the Eurozone economy. In December, the rate remained at 0.5%, but the EUR/USD pair saw extraordinary turbulence, moving a massive 390 pips, which earned a superb profit of $1,440 on a $100 investment.
Oil is now cheaper than bottled water, inflicting extensive consequences on various countries and companies, meanwhile falling oil prices presented Forex opportunities. Last week, Crude Oil fell below the $30 a barrel mark. A barrel of Brent Oil fell 6.26%, ending Friday at $28.94. West Texas Intermediate (WTI) experienced a 5.71% drop, closing at $29.42 a barrel.
Gold, on the other hand, registered positive movement on Friday. An ounce of Comex Gold rose 1.59% to $1,090.70. Gold Spot likewise had a 0.97% bump, ending up at $1,088.88 an ounce.
The major US indices are still struggling to ignite in 2016. The DOW Jones dropped 2.39%, finishing the week at 15,988.08. The S&P 500 fell 2.16%, closing at 1,880.33. And the NASDAQ slipped 2.74%, closing Friday at 4,488.42.
The insights of CrowdTrading ahead of interest rate decisions portrays that in the USA, the hope is still for further interest rate hikes. Yet, analysts remain cautious in the short term. Last week, US retail sales sent USD crashing, while for this week the Monthly US CPI is in focus, which is to be announced on Wednesday at 13.30 GMT. As the main driver of inflation and a rise in consumer prices could encourage the Fed to continue with the country’s so-called “tortoise” recovery.