Market News Update 1/25/15 thru 1/30/15
The euro is well on its way to taking a beating at the hands of the USD. Are you hedging your trades on the winning side?
Is the sky falling, as we continue to see big time volatility plaguing the currency markets? Like a magnet glued to the bottom of the euro we are seeing the currency plummet to levels we haven’t experienced before.
Euro zone Q.E. has finally arrived at a rate of 60 billion euro’s per month of government bond purchases. We’ll see what kind of real sex appeal it can muster to boost the economy out of looking like the ECB just put lipstick on a pig.
Parity appears to be the new buzz between the euro and the USD. With support levels being shattered, it looks like we are headed straight for a 1:1 ratio between the two currencies.
Let’s take a look at the key releases this week that may impact your currency trading pairs:
For the Euro – With the Greek election looming and early predicted results on the weekend horizon, we will continue to see the volatility that will strike your euro pairings. Will we be seeing a Greek exit from the euro? Chances are, if the front running Syriza party comes away with a win they will need to come to terms with creditors that bailed out the sinking economy. If this does not come to fruition, we look to see rumbles of a defection and added weakness to the euro.
German Ifo Business Climate, month over month Preliminary CPI, year over year CPI and Core CPI Flash Estimate.
German sentiment can be none too happy with the European Central Bank’s announcement of quantitative easing, but will have to accept the consequences in hopes of leading the euro zone through an injection of stimulus that will have it shooting with adrenaline through out 2015.
For Germany, being the strongest player in the euro “league” may come at a price to its own economy. Although, for the euro, parity may not be half bad. Exports may be the key to stimulate growth along euro zone industries. To look on the bright side of an other wise gloomy cloud, in the longer run, this may create an opportunity for a win-win scenario for Germany and the weaker euro players.
For the Asian markets on this week’s event calendar:
The Yen – Trade Balance numbers released this week look to have limited impact on market movement as the currency is relatively quiet for the week and could find itself void of any significant opportunity for profit reaping volatility.
Later on in the week we will have the release of China’s Manufacturing PMI which, if the data comes in weak, may at least, send a ripple through your Asian currency pairings (Yen, Kiwi, Aussie).
The Kiwi – Official Cash Rate, Reserve Bank of New Zealand Rate Statement and Trade Balance.
In light of developments in the forex market, will the Kiwi start to sprout the wings of a hawk? Don’t be surprised to see the Reserve Bank hovering on hints of a rate increase that will be emboldening strength to the countries commodity staples.
The Aussie – NAB Business Confidence, quarter over quarter CPI and quarter over quarter PPI.
The Aussie took a few surprising hits this last week, but the fundamental numbers for this week hope to steady the currency going forward into next month.
To the London session and the Sterling – quarter over quarter Preliminary GDP appears to be the only major release this week that may spark market movement. Steady as she goes climbing with numbers that may indicate strength against the euro.
The USD – Packed with a slate full of releases that may have significant impact on your USD currency pairings.
Month over month Core Durable Goods Orders, CB Consumer Confidence, New Home Sales, Federal Reserve Statement, Federal Funds Rate, Unemployment Claims and quarter over quarter Advance GDP.
Everybody needs to be keyed in on the verbiage that will be utilized by the Fed’s to indicate when a rate increase is on the horizon. Yellen and the Fed’s, I’m sure, will be talking patience as they will be playing their cards close. Don’t anticipate “over exuberance” based on the economies strengthening numbers and the strength of the dollar as the bigger picture will be in focus. The Fed’s will be holding their hand tight. They may leave us hungry on when interest rate “belt tightening” will begin, but so far it appears to be an early summer hors d’oeuvre.
For all your forex/binary option market info and to learn more about our winning trading systems subscribe to SmallMoneyMadeBig.com