Welcome to the easyMarkets weekly review where we look back over the results of some of the previous week’s economic indicators. It gives us the chance to reflect on how much expectations were met or missed and to examine a successful trade you could have made this week.
Event: US Core PCE Price Index
Date: Tuesday 30 May 2017 at 12:30 GMT
Markets affected: EUR/USD, GBP/USD, USD/JPY
Trending hashtags: #usd, #inflation
Core Personal Consumption Expenditure (PCE) in the US increase 0.2% for the month of April as analysts were forecasting. This inflation figure came above the previous month’s 0.1% rise but on an annual basis reduced to 1.5% from 1.6%. Inflation data has been lower than forecasts recently and the drop in oil prices have been blamed. It is seen as a temporary glitch by the FOMC members who had been expecting inflation to hit their 2% target.
Event: EU Inflation Data
Date: Wednesday 31 May 2017 at 09:00 GMT
Markets affected: EUR/USD, EUR/GBP
Trending hashtags: #eur, #gdp
The Consumer Price Index (EU Norm) for May in the Eurozone fell to 1.4% from the previous month’s 1.9% as analysts were expecting. On an annualized rate it fell from 2% to 1.5%, again in line with expectations. The EU Norm, like the national CPI is considered a proxy to inflation and is released by the Instituto Nazionale di Statistica.
Event: Canada GDP
Date: Wednesday 31 May 2017 at 13:45 GMT
Markets affected: CAD/USD
Trending hashtags: #cad, #gdp
Gross Domestic Product for Canada in March came in at a better than expected 0.5% beating out the previous month’s flat line of 0% and surpassing analysts’ forecasts of 0.2%. On a quarterly basis, Q1 of 2017 performed much better than the previous quarter coming in at 3.7% versus Q4’s upwardly revised figure of 2.7%. However, it still disappointed expectations of 3.9% showing that even with the increase in commodity prices, the Canadian economy still has room for improvement.
